Last December, Forbes released an article outlining critical HR trends to watch for in 2018. The trends they described seemed to have a few things in common – they focus on emphasizing employee experience, automation in human resource practices, people analytics, as well as the gig-economy’s shift to short-term contracts and freelance work. If you have already implemented some of these recommendations, great job! If you haven’t yet done so, there’s still plenty of time for you to get these trends processed and executed in 2018.
With the year over halfway complete, now would be an ideal time to analyze the current outcome of these predictive trends and reflect on their impact on organizations. Learn what strong foundations have been put in place and why you will want to implement them in your organization this year.
Trend #1 – Evolution of Employee Engagement
Employee engagement is so crucial in the workplace, it has evolved to be more than what is used to be. By focusing on employee engagement, along with culture building and performance management – employee experience was born. Employee experience includes all the encounters an employee has throughout their connection to the organization and the role they play in its growth. It is much more than perks and parties that many companies are providing.
Employee experience exists alongside employee engagement. By combining your organization’s efforts, employees will be more empowered than ever. Not only are they being provided with the opportunity for their thoughts and concerns to be heard, but they are listened too, and changes are being made. This new priority allows for data to be gathered throughout the entire employee lifecycle, rather than just engagement and its drivers. By measuring all of their experiences, you can gather direct feedback on specific practices, such as onboarding, training, and restructures.
Companies who have already implemented this transition, have seen excellent results (both on an individual and company-wide level). Highly engaged employees to be up to 202% more productive. As employees productivity increases, business success also increases; 233% greater customer loyalty and a 26% increase in company profits. This is because there are friendlier staff, improved communication, and better quality and delivery of products.
Trend #2 – Digitalizing the Workplace with AI
This trend has been known to disrupt the industry status quo. Digital HR practices and tools like artificial intelligence and machine learning have had a significant effect on recruiting practices and have assisted lowering costs, reducing time, and increasing the number of candidates who align with the organization. There has been much controversy regarding this new trend, and some organizations either are excited to implement or extremely hesitant.
Some of the world’s biggest companies (like Amazon, Uber, General Electric, and Shell) use AI and machine learning throughout their HR processes. The benefits of using these digital tools include personalized employee experience (evaluations, recognition programs, talent mobility), cognitive-supporting decision-making (team training, hiring processes, vacation requests), and smarter people analytics (removing bias).
If you aren’t on board with this new process yet, you might want to as this trend isn’t slowing down anytime soon. Information-Age announced that the market for AI will grow from $8 billion in 2016 to $47 billion by 2020.
Trend #3 – Welcoming People Analytics
People analytics allow organizations the opportunity to understand better employee data and how it can affect business functions. This is the method of analytics that aids your managers and executives to make decisions regarding the workforce. It can help make organizations smarter by making more strategic and informed decisions.
It is evident that leadership teams are faced with challenges that can be quite difficult to balance. These challenges can be prioritizing numerous data requests, merging multiple data sources, and the constant tension between functional disciplines. This is where people analytics comes in.
Deloitte’s Global Human Capital Trends found that 71% of companies see people analytics as a high priority in their organizations (31% rate it as very important), progress has been slow. The initial implementation of people analytics is just the first step of this trend. Success will stem from a prolonged period of commitment and investment. The same study also released seven steps to create a successful people analytics platform:
- Invest at a senior level
- Establish clear leadership
- Prioritize clean and reliable data across HR and the organization
- Understand that analytics is multidisciplinary
- Increase analytics fluency throughout the organization
- Focus on actions, not just findings
- Integrate HR, organizational and external data
Trend #4 – Redefining the Labour Market
The last prediction Forbes announced is that the labour market is becoming a ‘gig-economy,’ which is comprised of short-term contracts and freelance work compared to full-time, permanent jobs. A Globe and Mail study found that approximately 30% of the current Canadian workforce is “non-traditional workers,” with that number expected to rise to over 50% in the next five years.
This new norm will have some impact on your organization. You will need to implement on-demand talent acquisition; this promises lower costs but also creates a competitive environment for top talent. Also, you will have to remain flexible and collaborative to develop healthy and reliable relationships with these contractors.
Bonus Trend – Diversity, Inclusion, and Belonging
As a bonus, we would like to provide you with a final trend. The topics of diversity, inclusion, and belonging (also known as DIBs) is another important HR trend of 2018. Through a partnership with Feminuity, Fortay designed the DIBs Canadian Tech Survey to help the community in their efforts to become global leaders in this field.
With a heavy emphasis placed on culture and engagement, DIBs goes hand-in-hand! It has been proven that truly diverse and inclusive cultures outperform their competition with better financial returns, greater innovation, higher performing talent and more engaged teams, as well through their ability to attract and retain top talent. These three traits are important to implement in your culture building strategy.
Change starts now. Goals that organizations have planned to achieve by 2020 or even 2025, already have their roots established. Human resources are needed to increase its involvement in business practices on a daily basis to help align all functions and processes. Its contribution and effect on business are becoming increasingly impactful.
Fortay.ai is a predictive analytics platform for culture-first companies, helping them to build diverse and highly-effective teams with a data-informed approach. We make it easy to hire and retain talent for true culture add and nurture your company culture.
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