HR practices- Challenges & trends in future
Designation : - Asst. Professor
Organization : - , Institute of Business Management, National Council of Education Bengal, (Under Jadavpur University, Kolkata)
During the last 15 years, role of HR practices all over the world have undergone major transformation. This paradigm shift is not only in terms of increased importance of human developmental aspects in HR but also the modern days HR proponents have been able to free themselves from mundane routine, repetitive activities of personnel function locked in only board room meetings and instead focussed more on making the concept of peoples' management practices more meaningful and sustainable to gain competitive advantage.
With the advent of high technological innovation, application of information technology, designing of ERP system ingrained with HR software, it is becoming easier today to maintain human resource data bases, monitor and control the accessibility of manpower resources and develop the human potential as per the need of the time specific project both in the long and short run. So, HR team, world over try to re-invent the fundamentals of HR in a new perspective.
Challenges of developed and developing countries
Most of the developed countries like the USA, Germany and Japan are faced with the problem of aging population. Nearly 30% of their population are over the age of 60 causing the talent shortages. This situation would remain till 2050. So, these countries have to source the fresh human resources from other countries. Developing countries on the other hand have surplus young population which can be made use of to offset the shortages of labour force in advanced countries.
While the advanced countries would face the challenges of aging population, developing countries would have surplus young population. Thus surplus labour force of developing countries can be made use of to offset the shortage of labour force in advanced countries. But there are problems of inadequate skills, associated labour cost, cultural diversity, migration and immigration issues, brain drain & threats from the employees of the advanced countries.
Among the developing countries, situation in India is quite different. Just over 7% of the Indians are over the age of 60. This percentage will increase only to 12% by 2032. Indians will continue to be young and will see a swelling human resource of scientific, technical and professional talent. However, the rate of business growth in India outstripped the supply of talented human resources. So, Indian businesses are faced with the daunting task of attracting, retaining and developing people in a very competitive environment.
So, foreign MNCs would be expected to invest more on training, development and performance management of the workforce working in their subsidiaries in developing countries like India as well as educating the workforce in order to develop future human resource base in host countries. Recruitment and career advancement for HR professional in India will increase manifold provided they have requisite qualification, training and knowledge which are very relevant in today's context.
But apart from traditional HR roles blocked in only staffing, leading, training and team building activities what other unique roles companies are searching within the HR professionals of the new millennium? Let us point out some of them:
Companies try to locate the prospective learner
Though super - specialized skilled and knowledge workers will be in high demand but companies are looking at people who are eager to learn and who can seamlessly move from one role to the other leading to job enlargement and multi - tasking. Apprenticeships training as well as massive open online courses or certifications are needed for those who want to stay relevant in the rapidly changing corporate scenario of HR.
Digitization & HR
All HR functions will have to employ analytics to understand the needs of people in a more customized, individual - specific manner and provide solutions through the use of mobile technology and newer platforms. Digital platforms and chat bots are needed for communication, continuous feedback and conducting employee survey. All automation of HR processes will thus reduce the effort spend in redundant processes and harnessing the skills and talents through diverse workforce can be done by encouraging creativity and unique diverse thinking abilities. People who are more proficient in using ERP and HR software modules with an added knowledge of people's management are the need of the hour to speed up efficiency in the system.
- Enlisting leaders outside of HR to help develop the KPIs.
- Collaborating with business managers to ensure KPIs link to business unit strategic goals.
- Focusing more attention on links between people measures and intermediate performance drivers (e.g., customer satisfaction, engagement etc.).
- Increasing manager acceptance through training programs and concrete action plans;
- Working with HR to simplify metric and automate data collection.