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Global Human Capital Trends To Watch Closely In The Coming Year

Our workforce is changing at a rapid pace, which means that organizations and companies must reinvent their ability to learn. According to 2019 Deloitte Global Human Capital Trend survey, the fabric of our social, political, and economic issues are changing how human resources are hired, trained, and mobilized. A relentless pace of artificial intelligence and cognitive technologies are at the heart of innovation, which requires lifelong learning.

The new workspace is defined by employees who are eager to learn new technologies on the go. It also means that workers must take matters into their own hands, as companies may not be able to train them when the new technology arrives. For leaders and companies, the changing dynamics of workspace means relying on and trusting their workers to call the shots. In fact, human resource managers must also look for a culturally diverse workforce and provide them opportunities to mobilize internally irrespective of the geographical constraints.

Following are top 10 trends and must-know statistics to understand the major shift in the global human capital trends:

The Rise of Alternative Workforce

The advent of the Internet and advanced communication platforms have paved the way for a new kind of workforce that is not dependent on physical space. Freelancers and web entrepreneurs are examples of the alternative workforce that has no physical constraint. Similarly, contract-based jobs and gig employment is yet another growing trend as employers allow their workers to work from home.

The technology sector is at the forefront of the human capital trend as companies such as IBM allow more than 40% of their workers to work from home. In fact, a large percentage of web hosting companies also hire home-based workers. A recent survey by Entrepreneur Magazine found that alternative workforce allows companies to lower overhead costs and increase employee retention. Going forward, if organizations want to access the best talent, they may have to change how they hire and administer their workforce.

Redesigned “Super jobs”

Historically, our workspace is defined by highly skilled professionals who are able to use their narrow skillset to target a particular job. Companies often looked towards specialists who could take care of their defined profession. In the last ten years, technology has created space for a multi-disciplinary workforce that is adept in artificial intelligence, cognitive technologies, and process automation.

These workers are trained for roles that combined work and responsibilities from a number of simple jobs. The new “human capital” is increasingly defined by super jobs, which includes knowledge of multitasking software, industry-related skills, networking, and presence on the Web.

For global workforce, it means that technology will replace them if they are unable to redefine their skills according to the demands of new technology. Already, 62 percent of the companies in North America are using automation to replace repetitive task, which is why it’s important for the companies and the new workforce to adopt artificial intelligence.

A New Approach to Leadership

Just like the future workforce, leaders must also embrace and change how they lead their organizations. The huge influx of information in the 21st century has already made traditional leadership skills obsolete. For instance, senior managers and leaders are trying to lead their teams through ambiguity and complexity of the work environment. Such ambiguous situations are rampant in the workforce due to the implementation of new technology.

Unlike in previous years, leaders and CMOs are increasingly facing new and unpredictable challenges. Such challenges are mainly due to the implementation of new features and the demand for advanced mechanism. It also means that the new leader will have to work with a combination of computers and the traditional workforce. According to Deloitte, leaders and senior managers must be able to work remotely and take instant actions, when required.

The Human Experience

While most organizations understand the need to improve employee experience, they often fail to get critical feedback vital for the success of the organization as a whole. As global human capital trends change, organizations must understand that the key to a great employee experience is achieving the human experience that relates to impacting all the stakeholders.

It means that future organizations much change the way they address employee feedback. Instead of integrating standard feedbacks, the feedback should be done on a regular basis and it must integrate company-specific questions. From a broader perspective, companies should use this feedback to enhance the human experience by measuring the impact on human capital from a stakeholder’s point of view. Asking open-ended questions that allow employees to provide critical insight into the problems and challenges of the workforce is one way to address the problem.

Team-based Hierarchies

Research indicates that the future workforce will be more reliant on teamwork compared to the traditional workspace. From a manager’s perspective, it is important to create rewards and incentives that are tailored towards appreciating the teamwork instead of individual performance. However, recent research shows that most managers and companies are still reliant on an individual performance review, which means that incentives are rewards based on the performance of an individual.

As companies adopt hybrid models of work, they will be working with business process automation software. The automation software is made to enhance the workspace productivity through teamwork. In 2020, an increasing number of this automated software are available online as freeware or a low-cost alternative to pricy hardware-based technology. Hence, it is important for managers to design incentives and rewards based on team hierarchies because the global workforce is trained to work in a hybrid environment.

Creating Employee Relevant Rewards

Whereas rewarding teams is an emerging future trend, individual incentives will also remain paramount to the success of future organizations. Unfortunately, very few companies can claim that their rewards systems are closely aligned with their organizational goals. In a recent survey, only 11 percent of companies said that their rewards system takes into account the organizational objective. In fact, almost two-third of the respondents said that the individual reward system had very little to do with the organizational objectives.

As companies seek to enhance the “human experience”, it is necessary for them to redesign a reward system that adheres to their overall goals. As organizational goals are made from the perspective of benefiting all stakeholders, creating a reward system for employees that adheres to the organizational goals will likely benefit everyone in the long-run.

Recruiting is Becoming a Challenge

The ever-changing technology has made it harder for companies to recruit workers who are closely related to the new roles. Recruiting has become a challenge because companies are actively changing the work roles and redefining jobs according to the upcoming technological trends. As old roles give way to new roles, human resource managers are also struggling to keep up with the demands of their employers to hire a dynamic and diverse workforce.

To confront these challenges, human resource managers are looking to engage in social media and online channels. They are also increasingly hiring contractual and freelancers to increase productivity.

Research shows that human resource managers may find it difficult to recruit candidates through a multi-level hiring process as many candidates leaves early in the process. To recruit talented individuals, large organizations must also compete with startups, which are willing to pay top incentives to highly-skilled workforce. Overall, recruiting skilled professionals will remain a challenge for human resource in the near future.

Demand For New Skills and Capabilities

The changing dynamics of technology is also impacting the workforce. The influx of information means that employees must learn a new skillset and adapt to new technologies. Unlike the traditional work environment, the new work space is defined by the need to consistently learn new things.

In the workplace, learning is evolving as it becomes more integrated with the nature of job. As new technologies are deployed, the worker must also learn such technology as quickly as possible. Sometimes, there is not enough time for organizations to provide training, which means that the employee must take action themselves. Similarly, the learning experience is becoming more personal enticing workers to learn new technologies for their own benefit. Overall, organizations must be able to adapt lifelong learning models that encourage their workers to be consistently ready to adapt to changes to their environment.

Internal, Enterprise-wide Mobility

As workers adapt to a lifelong learning model, enterprise and organizations must encourage an environment where internal mobility and progress are encouraged. It is a fact that organizations cannot consistently rely on an outside workforce to offer them the needed expertise. Instead, organizations must prepare their own employees for new jobs, roles, and functions. As discussed, human resource managers are already finding it difficult to hire employees with the new skillsets; therefore, it is imperative that companies must prepare their workforce for new jobs and ensure an enterprise-wide mobility.

For multinational organizations, internal recruitment and enterprise-wide mobility can increase productivity and save a lot of costs associated with hiring external workforce. A successful company in the future will encourage its employees to learn and move to new positions and role within the organization. Such roles should be available across different geographies allowing workers to enhance their global experience.

Companies Must Embrace Diversity

Most managers think that diversity is one of the most important trends to succeed in the future. As the demographics of a global workforce changes, companies must embrace diversity in their workplace to increase overall productivity. A diverse workforce is integral to understanding a highly diverse global customer that is increasingly depended on the Internet.

There is growing evidence that a diverse workforce is more innovative, more productive, and more engaged. It means that human resource managers must be willing to recruit the workforce beyond the local and national boundaries because a culturally diverse workforce will be able to understand and tackle customers who shop and interact in a virtual realm.

Thanks for reading "Global Human Capital Trends To Watch Closely In The Coming Year", by the Linchpin Team in Chicago, Raleigh, and Wake Forest.

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