The advent of technology and changing demographics are forcing significant differences in the way organizations hired and managed their talent in the past. CHROs, recruiters and every HR practitioner must adapt to these changes and bring a new order to talent management. They must give due importance to the changing times and keep an eye on the best practices to implement them in their organizations. This is the only way to build an HR policy that is disruptive and meets the demand of the future. Let us examine what has changed and will change for the HR in the coming future. Here are the disruptive HR practices for 2018.
- Man-Machine Collaboration is a disruption in HR
- HR emerging as a value based role is a disruptive innovation in HR
- Continuous performance assessment in HR is a disruptive HR practice
- People Analytics Tools are HR technology disruptions for 2018
Man-Machine Collaboration is a disruption in HR
Harvard Business Review predicts that as much as 80% of the employee turnover is due to bad hiring decision. In the same context, another report by Business Insider reveals gut hiring has 50% failure rate. The writing on the wall is clear. Relying on human gut for making hiring decisions instead of analytics data can prove expensive to an organization. It is no longer man versus machines and those who still believe in this are missing the bigger picture. In fact, the future is about man with machines and how machines can enable better decision making.
Humans are prone to unconscious bias, boredom, exhaustion and many other behavioral tendencies which may alter the final decision. On the other hand, machines have no such pre-conceived notion, can do the same task tirelessly and with greater accuracy. Using machine learning algorithms can help make better assessments as they employ a strictly scientific approach based on previous trends and data. To ensure a successful outcome, recruiters should leverage the power of these algorithms to narrow down on their choices and use human intelligence to make the final decision. Since the existing HR practices are neither scientific nor based on evidence, we are bound to see a growth in man machine collaboration in the future. Growing competition for top class talent is going to make sure that HR professionals resort to integrated approach, where Artificial Intelligence and Big Data are as important as human gut. Machine will help automate repetitive tasks of HR and give them bandwidth to invest time in strategic decision making.
(Also Read: Need for HR Digitization)
HR emerging as a value based role is a disruptive innovation in HR
The annual C-Suite Challenge survey asks CEOs across the globe to identify significant business challenges in front of them. This could be a little surprising to know, but the most critical concern of CEOs in 2018 is the ability or inability to attract and retain talent. What does this mean for HRs? They have got a great responsibility on their heads. This also reflects the growing importance of HR, from an activity based role (hiring, training, payroll) to a value based role, where we focus on the value these activities create for the business. This challenge is an opportunity in disguise for human resource professionals to rise above their current role. This is a chance to evolve and become a strategic business partner. To do so, the HR needs to think as a business – identify the customers, define value proposition, measure results and build a data-backed business case while asking for investments/budget allocations. This is not all. HR’s strength is its human element and as a people’s manager, HRs need the human touch to induce loyalty, employee engagement and a genuine work culture.
(Also Read: How to Improve Your Human Resources Department?)
Continuous performance assessment in HR is a disruptive HR practice
There has been significant buzz around performance management in the last few years. A survey of 300 HR leaders revealed 21% have already moved away from rating system in their performance management. Changing needs of work environment have necessitated this reaction from companies to ensure better talent development, less costly performance management and improved retention rates.
Organizations don’t need to do away with ratings altogether but this trend shows clearly that continuous performance assessment is very much possible and can have a transforming effect on your organization. According to Josh Bersin’s Deloitte HR Tech Disruptions report, more than 70% of companies are reinventing the performance management process in their organization. The new process includes having a regular employee-manager interaction, employee activity tracking, productive feedback and learning opportunities.
These changes in process are being acknowledged by HCM vendors who are shaping up their products to address the new concerns, although we are still far away from a complete solution to implement continuous performance management.
People Analytics Tools are HR technology disruptions for 2018
The last few years have seen an enormous flux of people analytics in HR processes. Organizations now resort to analytics and reporting tools to study their employee behaviour and improve metrics such as retention rate. Some tools have embedded intelligence to predict the factors that trigger high performance outcomes from employees. There are other analytics tools with embedded recommendation engine that tells which employees should take which training in order to optimize them for maximum performance.
Recent advancements in software and technology that can make sense of large datasets and the explosion of data itself have made sure that organizations can now fully utilize the maximum potential of people analytics. HRs already have access to huge data piles about their employees such as their demographics, academic credentials, compensation and performance data. With people analytics coming to the fore, HR can effectively and strategically leverage this data and act on it.
(Also Read: Importance of HR Analytics)