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Treasury Leadership Forum 2023 Deepak Bagla

By | Ramesh Ranjan | Startup Mentor | Consulting | Executive Coach | Professor | Editor

We have all got tired of the oft repeated quote “Change is the only thing Constant” and also about the VUCA world. But truly the Covid pandemic has shaken the world from its complacency and especially at the work place. How we view work, how we work, how we engage and others have taken a new dimension and threatens to become the new normal.

Human Resource (HR) trends are constantly evolving and keeping up with the latest advancements is essential for organisations to stay ahead of the competition. In 2023, organisations will be faced with new challenges and opportunities as they navigate a post-pandemic world.

Here are some of the emerging HR trends for 2023:

Remote work and hybrid models: The COVID-19 pandemic has been a catalyst for the widespread adoption of remote work, and this trend is likely to continue in 2023. Organisations are realizing that remote work can be productive and cost-effective, and many have implemented hybrid models where employees can work from home or in the office. The shift to remote work due to the COVID-19 pandemic is expected to continue, with many organisations adopting hybrid models that combine in-person and remote work, as organisations seek to balance the needs of their employees with the need for in-person collaboration and interaction. HR teams have embraced hybrid work but are still struggling to defining what it looks like and framing the rules around it.

Employee wellness: Employees and organisations truly believe that ‘Health is Wealth’ and are recognizing the impact of stress and burnout on their workforce. Mental health and wellness are becoming increasingly important to employees, and organisations are recognizing the need to support their employees in this area. Organisations such as TATA Steel, Wipro, Google, Microsoft, and Amazon are offering mental health support to their employees through initiatives such as employee counseling and wellness programs , as they seek to create a more positive work environment for their employees.

AI and automation: The use of AI and automation in HR processes is expected to pervade in all areas of HR from entry to exit. AI can be used to automate repetitive tasks, improve the accuracy of HR processes, and provide employees with more personalized support . They should be seen as an enabler freeing up HR teams to focus on more strategic tasks. HR will have to move up the value chain as most of the lower order HR activities are likely to be taken up by AI and automated. HR will have to leverage technology to provide a superior Employee Experience.

Organisations such as TCS, Wipro, Google, Microsoft, Amazon are investing in AI to seek to improve HR processes and provide employees with a better experience.

Diversity, equity, and inclusion (DEI):  Organisations are likely to place greater emphasis on diversity, equity, and inclusion (DEI) in their HR strategies. Organisations are realizing that a diverse and inclusive workforce can lead to improved innovation, better decision-making, and a more positive work environment. In India, organisations such as Accenture , Microsoft, Salesforce, Airbnb and Tata Consultancy Services (TCS) have taken steps to promote DEI, including creating internal initiatives and training programs. They have also made DEI a priority, with many investing in DEI initiatives and creating internal DEI committees.

Employee experience: Organisations are realizing that employees are not just looking for a job, but also for a positive and fulfilling experience at work. This means that organisations must provide their employees with not just competitive salaries and benefits, but also a positive and supportive work environment. The facetime between the Employee & the Organisation (through the eyes of the Manager) is shrinking. With this growing limitation (personal connect) organisations will focus on how do you engage your employees, how do you nurture an Organisation culture and how do you provide a superior Employee Experience.

Organisations such as Infosys, Schneider Electric, TATA Consultancy Services (TCS), Google, Airbnb, and Salesforce are focusing on improving the employee experience by offering flexible work arrangements, employee engagement programs, focus on mental health, wellness , work-life balance, career development and opportunities for growth and development. Organisations that focus on the employee experience will be better positioned to attract and retain top talent.

Gig economy and flexible work: Due to the VUCA world and a highly volatile business environment, organisations will be forced to keep their fixed costs down. Also agility is the key to success and with rapid changes in technology, more and more skills are becoming either redundant or being replaced by automation. Hence the gig economy and flexible work arrangements, including part-time and contract work, are expected to continue growing, presenting both opportunities and challenges for HR departments. The workforce mix will see a lot more of Gig workforce and gradually a reduction of permanent workforce.

Shift from Jobs to Skills: Since the earlier days, organisations used to cluster a set of tasks and called them jobs and built their organisation structure around these jobs, while managing every aspect of work. They assigned these jobs to individual employees. The pace of change in the last 100 years was relatively slow and it made sense to focus on jobs in organisations. However, at the dawn of the 21st Century, technology has evolved so rapidly that many of these tasks became redundant and Organisations had to part ways with these employees entrusted with these tasks.

Suddenly jobs have become irrelevant. Skills has become the centre of focus. Therefore organisations through HR will have to look at a skills-based approach to managing work and employees. Work/tasks will have to be performed beyond the formal job boundaries. It could be automated or the employee has to upskill themselves to stay relevant and be employed.

Upskilling and reskilling: Obsolescence of skills will be faster than ever before. With technological advancements and changing job requirements, HR will need to focus on upskilling and reskilling employees to help them stay competitive.

Data and analytics: Organic growth will be very difficult for most organisations. Hence Business will be hard-pressed for costs. People Costs form a large part of any Organisation’s cost. Hence HR will be hard pressed to demonstrate ROI in People Investment. Hence HR will be forced more and more to leverage the use of data and analytics in HR. Analytics in HR will continue to grow, enabling organizations to make more informed decisions and measure the impact of their HR programs.

On-demand Personalised HR Services: Personalization and On-Demand services have become the norm of the day in other areas of work & society. Can HR provide personalised on demand HR services to its employees. Technology has made it possible for organisations to personalize and provide on-demand HR services for employees in areas like

  •        Career Planning
  •        Training & Development
  •        Compensation & Benefits
  •        Flexi Work arrangements

HR will be hard pressed to move in this direction to stay relevant and competitive.

Employee Data Privacy: Every minute data is being generated and captured in Organisations. Employees are suspicious and concerned on how this data is being used. Hence HR be forced to  place greater importance on protecting employee data privacy, as data breaches become a growing concern.

The HR landscape is constantly evolving at a much faster pace than ever before. It has to keep pace with the Organisation and the changing nature of employee expectations. It’s crucial for organisations to stay ahead of the curve and adapt to these trends in order to attract and retain top talent, improve HR processes, and create a positive work environment for their employees.

The future may look daunting and volatile, but as Dave Ulrich has said that in a world of uncertainty, don’t chase the uncertainty, focus on certainty. Lets focus on our strengths, on issues that are in our control rather than dwelling on weakness or things that are not in our control.

#hr #hrtrends2023 #humanresources #humanresourcetrends

Republished with permission and originally published at Ramesh Ranjan‘s LinkedIn

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