Living in a world where people are constantly connected. We are unintentionally producing 2.5 quintillion bytes of data every single day. Over the last two years 90 percent of the data in the world was produced. This transformation affects how we communicate and how we consume information but also how businesses function. 78 percent of companies believe big data is expected to fundamentally evolve their operation in the next 3 years. But HR is no exception. More HR systems depend more than ever on automation, analytics and predictive capabilities. Using workforce data allows HR to make decisions that drive both better business and people outcomes.
Amazon, Facebook, Credits Suisse, Google and LinkedIn are implementing HR Analytics. In fact, Credit Suisse saves up to 100 million dollars every year, by expanding the retention rate after forging a more data-driven HR function. Digital workforce analytics market is predicted to be worth more than 1 billion dollars by the year 2023. The projected amount of jobs that require the analysis skills is 5 million in the US alone.
Companies scale their HR teams less on analytical skills. Just 8% felt that the modern state of their HR analytics was powerful. There simply aren’t enough people who hold all the skills to take on data-driven jobs. In fact a study by LinkedIn shows that only 18% of HR professionals currently have all the skills. So projected that the skill gap will keep growing. University Of California estimates that the Global demand for data scientists has already exceeded the supply by over 50%. It is of no doubt that data, digitalization and analytics are becoming crucial in HR.
Emerging business enviornment
A fast-emerging global business environment is influencing companies to rethink their internal and external customer-delivery models and accelerate their transformation agendas. The HR function can serve as the catalyst for such changes by aiding to make future-ready organizations, the type of businesses that can keep pace with quick technology progress, handle a gig economy that demands flexible and remote work options, and maintain the outstanding talent.
As we glance at the future, we see some of the priorities that will direct businesses through the transformations to come. Principles that, in turn, should define the ideas of HR functions everywhere.
Implement a people-first approach to meet present and future talent demands and to provide a seamless employee experience. Companies are in a competition to develop, attract, and maintain the fine skill. They should come up with the expectations not only of present employees but also potential new hires by delivering hassle-free, digitized experiences that are supported by self-service options, quick feedback tools and chatbots. HR functions are important to ensuring user-centric journeys along the complete employee life cycle.
Cost Efficiency and Value Delivery
Aim on value creation and cost efficiency to drive overall standardization and process simplification. As businesses attempt to raise process efficiencies so as to deliver sustainable financial results, HR requires to play its part in cost decrement through effective resource utilization. It can be done by automating transactional tasks and flexibly accepting new ways of working. The methods must be able to defeat the people’s challenges that appear from shifting business models, especially in times of economic slowdown, when organizations go through fierce recessionary pressures on business activity and cash flow.
Agility and Scalability
Promoting new ways of working and cross-functional collaboration by responding quickly and flexibly to transform business priorities. HR must keep on tracking with the exceptional speed of change and serve as the driving force behind a company’s emergence. The function is uniquely positioned to steer this transformation; by allowing and advocating for firm-wide change.HR can mould how work is being done and equip all employees with exactly the right skills.
HR departments must always be prepared to face the challenges of tomorrow. Businesses will have to remake the following factors of their HR departments to become future-proof
HR departments must initiate the right priorities to dictate how to produce the most business value. Having an understandable people strategy that ranges with the company’s complete strategy is important
An HR must cooperate with other functions and stakeholders to address the increasing sophistication of their organizations. It requires adapting current methods of working to create comprehensive process accountabilities through appropriate bundling, centralization, outsourcing, and the automation of activities.
IT, Analytics, and Digital Tools
Organizations must advance current legacy HR platforms, which are often costly and unwieldy to integrate to modern cloud-based solutions that can be used effortlessly with self-service platforms and best-of-breed digital solutions.
The capacity to remold the HR function of any business will considerably rely on whether its people are able to take on new roles and duties. The HR workforce requires to be quick in gaining skills that mirror the function’s new purpose, vision, and mission.
Change Management and Stakeholder Communication
The department must make a program management office to develop an implementation action plan, flag areas of concern, and track the success of its changes. Continuous employee-centric communication initiatives, with a clear “what’s in it for me” change narrative for impacted employees will guarantee alignment with appropriate stakeholders and are critical to sustaining the change.
HR has undoubtedly come a long way in being recognized as a strategic function with considerable impact on business outcome. With technology emerging so quickly, organizations have to make sure that they fully embrace digital transformation and be ready for the changes. Certain organizations are already working in this direction.