5 key trends affecting human capital management in today’s workplace
Take a look around the modern workplace, and you’ll see a great deal of change happening all around you. We’re operating in a new economic climate, we’re using innovative new technology and we’re adopting new strategies for doing work on a daily basis. A lot is evolving all at once.
The interesting question to ask is how this affects human capital management. In HCM, your job is to nurture employees and push them to be their most productive selves. You want them to be healthy, focused and hardworking every day. This is challenging because the same strategies you used 10 years ago probably won’t work anymore – as work adapts, you must do so as well.
So what’s the best way to adjust? There are myriad possible answers. According to HR Dive, the process needs to begin before your employees even start the first day of work – you need to look at recruiting.
In 2015, you’re recruiting in a job seeker’s market. The American economy has mostly recovered from the downturn suffered back in 2008, and as a result, there are plenty of jobs available to people today. Some candidates now have the leverage to pick and choose among the positions they like the best.
John Breman, managing director at Towers Watson, told HR Dive that as certain skill sets become “hot” and in demand, you need to be more competitive about recruiting in some industries.
“Even during the recession, we saw this,” Breman said. “Every organization has certain jobs that are problematic right now. In hospitals, it’s doctors and nurses. Utility, it’s line engineers. In tech, software engineers.”
This is just one trend affecting the state of human capital management, but there are many more. Here’s a look at five trends that have an impact on HCM today:
People clamoring for PTO
It’s not just a nice salary that today’s recruits are looking for – it’s also an attractive package of perks, including a good number of paid days off. Everyone enjoys a nice vacation, and in today’s climate, candidates will be looking for it during the recruiting process.
Shared accountability for wellness
Corporate health and wellness is a two-way street – companies should help provide for the health of their employees, but workers should also look out for themselves by demonstrating healthy habits. Both sides need to do their part.
One way to reward your employees’ hard work is with pay raises across the board, but that might not be the best strategy. Many workers today would prefer varying bonuses, with the highest amounts going to the strongest performers. This is something to consider.
Tossing out annual reviews
Does your company use an annual review process, holding meetings every year to evaluate your employees and their work? You might want to reconsider as it’s getting outdated. A better strategy is to provide people with regular feedback rather than use a rigid yearly schedule, and there are solutions out there that can help you do that.
A challenging cross-sample of generations
Multiple generations are competing on the same playing field today – the boomers of the past have been joined by Generations X and Y. Today’s HCM leaders will need to devise strategies for managing all of the above fairly and equally. This is a key challenge in 2015, with millennials entering the workforce in record numbers.
Learn how Dayforce HCM, a single application for human capital management, can help you better manage these key trends.