HR Trends to Watch in 2020

HR Trends to Watch in 2020 600 407 Balance Point Team

HR trends“The only constant in life is change.”

What’s true in life, is true in the world of human resources. What’s an HR professional to do? The only option is to embrace the changes that make managing employees interesting.

As the new year begins, we examine trends we find of interest that we think you will too.

Utilizing Meaningful People Analytics

Over the years, people analytics has transitioned from a dispensable HR practice into a recognized HR discipline. Through the use of data, organizations can see the correlation between investments in the workforce and real business outcomes. 

At the basic level, people analytics is used to reflect on past initiatives, and at the highest it can help predict outcomes. Access to better technology that’s capable of in-depth analyses of HR processes enables HR departments to understand the dynamics of human capital in a way that wasn’t previously possible.

The HR Trend Institute cites the need for organizations to keep the big picture in mind when rolling out analytics’ initiatives. Asking the question “How will the employees benefit from this effort?” shifts the focus from efficiency and control, to how the employee experience and the organization as a whole will benefit.

Leveraging Flexibility 

Flexible work environments, in which the employer and employee mutually agree upon when, where, and how work gets done, are growing in popularity. In the U.S., 94% of employers provide some sort of flexible work environment. 

Flexibility is so desirable that it is now being leveraged as part of a talent management strategy. Organizations are recognizing the role flexible work schedules play in attracting, engaging, and retaining talent. In fact, According to a recent SHRM survey, 91% of HR professionals agreed that flexible work arrangement positively influence employee engagement

For the concept to be most effective, flexibility must be viewed as a tool to enhance productivity vs. an employee benefit. In their 2018 Global Talent Trends Survey, Mercer coined the term “Permanent Flexibility,” a model where employees don’t need to ask permission from a manager because it’s part of the company culture. For this to be successful, the organization must possess high levels of trust and enabling technology.

Mitigating Risk with HCM Technology 

Not long ago HCM service providers touted their technology’s ability to alleviate HR’s administrative burden—collecting paperwork, entering employee data, administering benefits, processing payroll, etc. While all are valid reasons, there are other benefits that have shifted HCM technology from being “nice to have” to a “must have” resource.

Perhaps the most compelling is the ability to assist with compliance. Adhering to today’s ever-changing employment laws is a universal concern, with good reason: U.S. companies have at least a 10.5% chance of facing a lawsuit; the average cost is $160,000 and takes almost a year to resolve

As HR laws continue to evolve and impose stricter penalties, the concern grows. HCM technology helps by storing critical data in one place, making it easier to spot areas of concern. Time tracking tools help satisfy record-keeping requirements, while reporting capabilities make it easier to analyze necessary data.

Keeping Up on the Trends

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