Technology has been playing a pivotal role in reshaping the way HR department performs for the past few years. So is it to play an active role in steering the user adoption revolution? Yes, some exciting and emerging HR trends are in the pipeline that would help hire, engage, and retain talent efficiently.
The fast-paced advancements in technologies, and the market drifts in the socio-economic market, mandate the corporate world to align with the alterations to acquire the benefits of it and streamline the HR processes to manage the workforce effectively.
The recent HR tech trends in India have grown considerably over the past decade. From spreadsheet manual report generation to automated record keeping, it has significantly contributed to the HR sphere and seamlessly managing the workforce of the organization.
What is HR Trends?
Human resource trends are the emerging trends in the HR realm that have prevailed in recent times. It enables the streamlining of HR tasks and improves the efficiency of the work of HR professionals. Also, it focuses on the future of the HR realm to provide automation, data-driven reporting, and quicker processes that provide a seamless experience to the employees and management.
Furthermore, the work-life balance of HR professionals as well as employees has elevated due to the recent trends in HRMS software and its added features.
HR trends refer to the evolving practices, technologies, and strategies in human resources that shape how organizations manage their workforce. These trends often arise in response to changing business needs, technological advancements, and shifts in workplace culture. HR trends guide companies in improving employee experience, productivity, and operational efficiency.
15 Latest Human Resources Trends
The 15 latest HR trends that are gaining pace in the present times are as follows:
1. Embracing Hybrid & Remote Working
Since the world has moved towards hybrid and remote working environments, HR technology is also moving in the same direction. The latest HRMS is utilizing various remote working functionalities such as a performance management system, leave management system, etc to serve the HR in undertaking their tasks remotely, while also helping the employees remain productive.
With over 50% of employees wishing to continue working remotely, HR is aware that remote and hybrid work is here to stay. Hence, HRs are embracing the technology that would help remotely manage their employees and help them stay engaged with their company.
2. Improved DEI Workforce
As the workforce starts going down the remote route, diversity, equity and inclusion take on a different dimension altogether. With remote work, you are no longer restrained from working with the talent found locally. You can find talented individuals throughout the world and interest them in working for you by using the correct language.
Here, HR technology once again becomes a major ‘enabler’ by helping HR cross boundaries to find and recruit talented employees without any bias with the help of an employee management sytem. Having such a diverse team not only improves the work culture of the company but also helps in bringing the diverse viewpoints and perspectives of these individuals from different backgrounds.
3. Better Transparency
HRMS solution ensure transparency by helping with 360-degree feedback, 1-on-1 meetings, customized performance evaluations, etc. This helps the employees understand their value in the company and take necessary steps to improve themselves. It also helps them understand the company values better and align their work ethic with it to better fit in the company.
Due to these changes, the employees would feel motivated and cultivate a sense of belonging to the company and the team. They would also better understand their accountability towards their contributions and hence, undertake their tasks better. All of this helps a lot in ensuring the company’s success.
4. Virtual Employee Wellbeing
Owing to the pandemic, employee wellbeing has come to the forefront. As a direct result of this, HRs either started new employee wellbeing initiatives or reinforced the efforts put into it. However, providing well-being services would be impossible without remote working technologies.
There are dedicated applications developed to help remote employees with their mental well-being. Even AI is being employed in this domain as some individuals find it easier to open up to a bot than a human being. All of these efforts are put into employee well-being as the HR and managers have realized that it has a direct effect on the employee’s productivity and engagement.
5. Developing Employee Skills
Upskilling and cross-selling are going to be a huge HR trend in 2025. Hence, HRs need to be provided with all the help they can get, to support them in this endeavor. Mobile learning is the key buzzword here, and upskilling can be accomplished with the help of microlearning. Additionally, gamification can be used to make learning fun along with the usage of VR and AR technologies to supplement it.
Since closing the generational gap is also going to be a priority in 2025, most of it is going to revolve around developing the older generation’s digital skill set. All of these efforts would lead to a visible transformation in the workforce that would become the hallmark of a successful company in the future. The HR teams would themselves undergo major transformation by embracing digitization and implementing assistive software and technologies in their domain.
6. Implementing & Improving AI
AI has already taken the HR domain by storm. It has improved data-based decision-making in 62% of the companies where it was deployed. According to a Gartner study conducted in May 2020, 17% of companies already use AI-based solutions to improve their HR functionalities significantly, while an additional 30% are planning to deploy AI in HR by 2025.
All of these statistics point to one thing: AI in HR is here to stay and become even stronger in its assigned roles and responsibilities. Companies are already employing AI to improve their HR operations such as recruitment, employee engagement, performance management, etc.
However, AI would soon have an active role in ‘non-traditional’ modules such as employee training, workforce management, skills management, etc. Since AI-based HRMS platforms are on the rise, it would also mean that AI would become more efficient in performing its duties due to its additional usage.
7. Advanced Cybersecurity
With the advancement of AI and remote working, data security has become a viable concern for HR and management. As per an IBM study conducted in the US, the costs incurred due to data breaches in companies amounted to 4.24 million dollars in 2021. Remote work and the lack of cybersecurity awareness were poised as the major factors contributing to this huge figure.
As remote and hybrid work is here to stay, HR would be required to work in tandem with the IT department to draft a set of new remote-working employees. They would also be required to conduct cybersecurity training and even convince the management about the usefulness of the same.
They would also be required to play an active role in planning a response to cyber-attacks. All of these cybersecurity-related factors need to be considered while deploying the IT security infrastructure and policies of the organization.
8. Employee Monitoring
Although monitoring employee productivity has given rise to some controversies regarding employee privacy, it has been heralded as the next step in improving the overall productivity of the company.
With the rising popularity of remote working, employee monitoring technologies are again in the limelight. These applications can be used to monitor the employees with the support of time tracking, software usage, internet usage, random screengrabs, etc.
On the other hand, companies are regularly taking feedback from their employees to understand their hardships and improve their processes and daily work, as well as improve their overall experience with the company.
This data can be used creatively to track productive habits and avoid burnout. It can also be analyzed to develop soft skills training for the employees.
9. Better HR Communication
Since remote working hurts employee communication and collaboration, HR technology has stepped in to be a communication enabler. A recent survey has already established that 60% of remote employees are actively collaborating on given tasks, while 77% of on-site employees can collaborate effectively.
Hence, it is up to HR to develop the required circumstances to communicate and collaborate effectively. Technology can be used to interact with virtual teams who are geologically apart yet working on the same project. Similarly, with the help of HR technology, one can also let gig workers collaborate with permanent employees to ensure that the projects are completed on time.
10. Powerful Analytics
The digitization of HR has also resulted in the rise of powerful analytics and reporting tools. In fact, with the help of AI, predictive analysis can be conducted, which helps predict employee behavior based on historical patterns.
Based on these patterns, HR can take necessary actions to correct the company’s course. For example, if there seems to be a recent rising trend of resignation among employees, you can analyze it with the help of AI-enabled HRMS and take the necessary steps to curb the turnover.
Access to powerful analytical tools also helps HR allocate adequate resources for specific tasks. With the help of big data analysis and automation, HR could manage employee engagement with improved efficiency as they could get suggestions from the software to improve the overall company efficiency.
11. Four-Day Work Week
4 days work a week is gaining momentum post-pandemic highlighting benefits such as improved productivity and enhnaced work-life balance.
many countries like Japan and others are favoring the concept of 4 working days a week to foster enthusiasm in employee hence improving their work-lfe balance and priorotizing their mental health.
Infact, countries like China is also promoting “Dont feel like working leave” in which employees can take leaves on days they feel drowsy or are not in their productive self to come to the office to work. All this is done to improve the mental health of employees and make work life stable.
Four-day work in a week is still in talks for the Indian market, juggling between the pros and cons of the business market. Trials and discussions are in pace to reach the ultimate decision. This is a revolutionary trend that will change the HR market parameter to a significant extent if enforced. Also, it will bring some positive impact on the employees well-being and is aimed to improve the employee empowerment without compromising their work life or business goals.
However, controversies on it are prevalent and to the contrary, 70 hours working in a week is voiced, yet, as per statistics and reports, it has always been seen that employees with better work-life balance tend to perform 70% more efficiently than those with prolonged working hours. Infact, mental health being the “talk of the town”, it is essential for organizations and HR professionals to make the workplace inclusive and engaged without stressing it for employees for higher retention and improved productivity.
12. Return-to-office Policies (RTO)
Post-pandemic, as companies resumed working from the office and RTO policies became prevalent, clear communications and transparency regarding the return-to-office provisions are the latest trends in the human resources management realm.
There is a significant drop in the footfalls of employees in the office due to work-from-home provisions that provided them with comfort and saved time in travel, especially in the metro cities where traffic congestion is a major hurdle for employees to reach the office.
Also, the reluctance of employees to return has created a major challenge for HR professionals to deal with the situation and make strategic engagement plans within the organization that will regain the interest in employees to return to the office in their productive selves.
This is one of the most active trends in momentum which requires strategic change management and adequate people analytics for solution.
13. Big Stay Trend
In times of recession or financial instability, employees prioritize job security and stability over seeking new opportunities, leading to a trend known as the ‘Big Stay.’ In recent times where prevailing war situations among eminent countries like Russia and Ukraine are hampering the job market in the USA, leading to recession in international IT sectors vested in India, retention is the preference for maximum employees.
The workforce is much more focused on job security rather than seeking new opportunities as the job market is economically crashing. The big stay trend is gaining pace with the increase in recession in the job market bringing along challenges for HR to bring back employees to the office while maintaining the productivity acceleration and enthusiasm in employees.
14. Pay Transparency
Pay Transparency is one of the important trends in HR that is essential in recent times. This is becoming important as new labor laws and regulations are mandating pay transparency to help employees know their salary breakups and the salary ranges of job postings for candidates applying for jobs.
This can help the candidates in deciding upon the application to the job role or moving ahead with other offers or opportunities.
Also, By disclosing salary ranges, companies help to reduce pay disparities that can be influenced by gender, race, or other biases. When employees know the pay range for their role, it becomes easier to identify and address unfair compensation practices, fostering a more equitable workplace.
furthermore, pay transparency can also help retain current employees. When they know that salaries are fair and in line with market rates, they may be less inclined to leave for other opportunities, reducing turnover rates.
15. HRMS Subscriptions Over Purchase
One of the actively running HR trends is subscriptions over purchase, which enables clients of organizations to subscribe to HRMS software rather than purchasing. Subscriptions to HRMS can help them use specific modules of the software as per their requirement without paying the wholesome amount.
Also, with the change in workforce, the change management can be efficiently accommodated in subscription plans which will cost them less and provide flexibility to change it as per convenience. Subscription-based HRMS (Human Resource Management Systems) are becoming a popular trend in the HR industry. This model offers significant benefits over traditional software purchasing by providing flexibility and cost-efficiency.
Subscription models usually include regular software updates and new feature releases at no extra cost. This ensures that organizations always have access to the latest tools and functionalities, which can be crucial for maintaining a competitive edge and complying with changing regulations.
Wrap Up
The future of the human resource trends is majorly dependent on technological and socio-economical developments for better workforce management. With the increase in workforce needs and organizations’ requirements, the organization and the HR professionals need to match pace with all the latest developments and new trends in HR as there is a plethora of opportunities and convenience embedded in it for business advancements.
Also, the recent trends in HR being of futuristic vision, help the HR professionals to maintain a work-life balance with efficiency and make data-driven decisions that elevate the growth of the workforce and the company.
