The role of HR is evolving rapidly. With the introduction of new technologies and the changes in the way we work, HR executives have to think differently, operate differently and engage differently. From managing hiring challenges to combatting “quiet quitting,” companies and employees are placing new demands and expectations on HR leaders, requiring new skills and an agile approach to work.
Here are five areas I predict could shape the business of HR in the future:
1. Workplace Flexibility
Where we work is no longer set in stone. The pandemic has permanently changed the mindset that employees need to be in the office or travel to meet in person. Employees are demanding more flexibility and no matter what your company policy was or currently is—remote, hybrid or hotel (for office use as needed)—employees are demanding more work-life balance.
2. Inflation’s Influence On Retention
While still weathering the storm of a three-year health pandemic, one would think that HR gets to stop and take a breather. Unfortunately, HR—and our employees—may need to brace themselves for pain in a few areas. If you are leading the people strategy within your organization, I believe it’s more important than ever before to become “a numbers person.”
Without going into an economics lesson that expands beyond my scope of expertise, suffice it to say that when inflation goes up, so do interest rates. The Fed is trying to curb that problem, but there could be a prescribed period of pain. In light of this, as HR leaders, we need to position ourselves to navigate this storm alongside our CFOs.
3. The Potential For Training And Working In The Metaverse
Technology is not slowing down. Not only do HR executives have new products and software to consider, but they have to also consider how technology will evolve in the coming years.
Similar to the popular game The Sims, the metaverse could offer employees the opportunity to train or work in virtual reality. This was tested by some organizations during the pandemic with conferences where attendees could create virtual versions of themselves—avatars—to “walk” the trade show floor and “talk” with vendors in attendance.
As these technologies advance, employees might no longer be limited to local trainings or sales pitches; they could be able to interact with humans around the world. For example, a sales associate for a hardware store could demonstrate products to a prospective client virtually. Universities are already adopting metaverses to provide training for healthcare workers.
4. Bespoke Employee Training And Development
The demand for personal options is not limited to where people work. Employees want to be recognized for their individuality—both their skills and their barriers—while companies are contending with an increasing demand for knowledge workers. In addition, employees are leaving employers because they seek opportunities for growth and development.
5. Overall Employee Well-Being
When companies began to respond to the Covid-19 pandemic, they primarily relied on HR teams to develop and execute strategies from testing protocols to PPE to social distancing measures. Post-pandemic there could be an expectation that HR leaders take more responsibility for supporting employee well-being.
The pandemic amplified the mental and physical health impacts of stress and fear. As companies determine how to respond to each new evolution of recommendations from federal and healthcare agencies, employees could struggle with the stress and anxiety the unknown pandemic still presents.
HR leaders are focused on employee behavior, and to reduce turnover and increase production, they can ensure employees bring their best selves to work. HR teams can monitor employee morale and predict effects on productivity. Identifying challenges early on and the interventions needed could be the key to managing employee health. Something as simple as encouraging a stressed employee who has unused vacation days to take some time off could improve morale and reduce turnover.
The role of HR is continuously evolving, and HR professionals can aim to learn about the technologies, trends and operational changes shaping the future of business. HR can be agile in adapting to those changes in order to effectively support employee development, retention and recruitment.
