Changes and innovations are happening every now and then!
Managers are using new ways to provide transactional analysis. New policies and practices have been developed to cater to recent trends which are described below:
Globalization: It has led to the expansion of the business. This sometimes means that production takes place in the host country instead of the home country. It becomes difficult for the employees as the job becomes hard and less secure. Hence, there is a change in HRM, as the concept of job offshoring is emerging. The job of showing means getting work done outside the home country which was previously done in the home country.
Slow economic growth in many countries: HRM is now physically conservative and the organization spent its resources only on obtaining competent employees. Thus, there are various new and extensive tests taken before hiring a new employee. They are becoming more cost-conscious. Thus HRM not only deals with humans but also there must be a command on financial budgeting and strategic management.
Employee experience: Employee experience, encapsulates what employees perceive or feel over the course of their employment and involves everything an employee is exposed to throughout their employment at a company, including Interview process Orientation, Training, and Development Work process, Stress, Performance appraisal, Working relationships, Promotion, etc
Technological innovation: HRM is becoming more competitive as there is always a dilemma between human capital and machines. HRM is now focusing on making workforce competitive so that it can deal with technological innovations. Now, they focus on scientific decisions in order to make efficient decisions. Also, HRM is now depending on various social sites for recruiting candidates.
Digital rewards: Rewards, awards, and recognitions are given to motivate the employees with the support of social media platforms. Undoubtedly it is the best motivator for most of the employees.
Increased competition: Because of Global integration, companies are facing hire competitions. Is a company’s aim at attaining first-mover advantage. Also, key attention is given to the reactions of competitors. Thus, HRM practices focus on recruiting and sustaining the workforce which is more responsive and faster. Adequate training programs must be developed to the employee for tackling challenges.
Deregulation and increased indebtedness: Many countries opened up their economies and financing away news. There are lesser regulations because of which companies and individuals are in debt. Rather, many countries such as us, India have a negative balance of payment. This leads to cost-cutting. hence HRM practices have now become more cost-effective and competitive.
More knowledge work: Now, HRM revolves around more empowered teams as organizations deal with more of intellectual work. Hence, along with technical requirements, the human resource manager also pays equal attention to the knowledge and its application by the candidate. HRM must focus on creating high-performance work systems.
More service jobs: Production jobs are transferred to developing or under developing Nations. That generally companies are producing services and not products. Thus, there is a shift in trains from product jobs to service jobs. Hence, HRM policies and practices are also witnessing change.
Demographic trends: The workforce of the nation also changes with time. India compared to the US and Japan. Along with this, there are individuals belonging to different cultures and ideologies. Thus, changing demographic Trends are making recruitment difficult for companies. HRM policies are witnessing changes because they have to encompass cross-cultural employees and non-traditional workers in the organization.
Thus, human resource managers are focusing on the bigger picture apart from traditional functions like recruitment, selection, training, and compensation. They now strategically plan the workforce requirements and environment in the future.
As AI and technological advancements are rising every day, we can look forward to evening more dramatic changes in the HR trends in the near future, as well.