By Oscar Waterworth
The year 2017 will be particularly challenging for human resources teams as they will need to constantly adapt their strategies to emerging trends and ongoing changes in the working conditions and environment. Here is a look at some of the top human resources trends for 2017.
Company Culture and Employee Engagement as a Priority
As testimonials of employees and candidates are more visible with the rise of employer review websites, corporate practices are more transparent than ever. This is marking the end of unethical practices, and the beginning of taking care of issues such as respectful treatment of employees at all levels including benefits, job security, etc. Companies need to focus on corporate culture and values in order to retain employees and attract future candidates.
Further Rise of Blended Workforce
A major HR trend still relevant in 2017 is the continuing change in structure of the global workforce. While full-time employees still form the greatest part of the workforce, there has been a constant rise in numbers of non-traditional workers such as freelancers, interns, remote and part-time workers, etc. Since permanent employees are working side by side with temporary or non-traditional workers, the HR teams will face new challenges when it comes to organizing different types of workers while working together on the same project.
Changes in Performance Management and Reviews
While the annual performance reviews are increasingly abandoned in favor of continuous, more personal methods of delivering feedback to employees, the companies are yet to find a performance management strategy that best suits their working environment and their workforce. Most employees, especially the younger generations, appreciate regular and relevant feedback, so they can focus sooner on areas in which they can improve their performance. In 2017, companies will likely switch from performance measurement to performance counseling—as comments and discussion with employers and peers will replace the traditional rating systems.
Separating Performance Management and Compensation
As companies redefine or completely abandon performance rating, the question of what to do with performance-based bonuses still remains. Some companies have already eliminated monetary rewards based on performance, as it was concluded that they don’t significantly improve performance or employee morale while potentially causing rivalry in the workplace. It will be important to determine how to calculate pay and bonuses in a fair and competitive way, while respecting the newly established culture of continual feedback instead of keeping the classic performance ratings.
Turning Towards In-house Training
In order to keep their existing employees’ skills up to date, companies have often turned to outside sources for additional training and education. In 2017, HR teams will be looking for useful skills which employees already possess and the ways these skills can be put to use in a more cost effective in-house training.
Increasing Appreciation of Work Flexibility
Flexibility may be the benefit that is currently valued the most as work/life balance seems to be very important to employees, especially younger workers. In order to keep the talent working for them in the new results-driven environment, companies are increasingly flexible with working hours and location of their employees. In order to effectively keep track of a growing number of workers with different schedules, the use of a reliable time tracking software will be essential throughout 2017.
Using the Advantages of Big Data Analysis
To remain competitive, companies will invest more resources in big data analysis as the results of it have the potential to improve every aspect of the business. Interpretation of the data will be helpful in areas of recruitment, improving employees’ performance and retention as well as reducing the number of bad hires.
Rising Interest in Wellness Programs
Companies are using wellness programs to reduce absenteeism, attract and retain talent, as well as save on healthcare costs. Creating a healthy and supportive work environment will help maintain employees in an optimal mental, emotional and physical state of well-being.
The successful implementation of good strategies in HR will lead to improved performance and greater satisfaction of the employees. This will largely depend on the ability of HR teams to tackle the challenges that will come with the latest trends while searching for adequate solutions for the new working situations.
Oscar Waterworth is a writer and a senior editor at Bizzmarkblog. He frequently blogs about the latest developments in the tech, marketing, and business industries. To stay updated with Oscar’s latest posts, you can follow him on Twitter.