HRM Trends: Part One – Work Trends
Covid at work
Reduction in force(RIF), furloughed/aid off workers/downsizing, COVID vaccinations, policy about employees who test positive, safety masks, distancing, controlled facilities, reduced or no business travel, at-home work
Psychological contract was violated
Where is work happening now?
Share of employees working remotely
Pre-pandemic: 8%
Start of pandemic: 70% (peak)
Now: 27%
Worker preferences
For workers with jobs that can be done remotely:
Most of them expect and prefer a hybrid arrangement
Very few prefer an exclusively on-site arrangement
Most are working 2-3 days per week on site
Advantages and disadvantages of hybrid work
A: improved work-life balance
A: more efficient use of my time throughout the day/week
A: less burnout or fatigue at work
A: more freedom to choose when or where I work
A: higher productivity
D: less access to work resources and equipment
D: feel less connected to my organization’s culture
D: decreased collaboration with my team
D: impaired working relationship with coworkers
D: reduced cross-functional communication and collaboration
D: disrupted processes
D: more difficult to coordinate work schedules, tasks, and timelines with my teammates
Work trends
Demographic shift, employment relationship, globalization, technology, skills and jobs
Aging workforce, diversity, immigration
2016-2026 fastest growing age group is 55+
Multiple generations in the workplace with different values
Hispanic labor force growing, Asian population on the rise
More women in the workplace…47% participation
Limited US visas for immigrant workers
Millions of undocumented (illegal) workers
Workforce Diversity in the US
Having a diverse selection of individuals from different backgrounds and experiences allows businesses to more efficiently market to consumers from a variety of ethnic and racial backgrounds, genders, ages, and sexual orientation
Workforce diversity and inclusion are key drivers of internal innovation and business growth
Workforce diversity benefits
Innovation and better decision-making
Local market knowledge and insight make a business more competitive and profitable
Cultural sensitivity, insight, and local knowledge mean targeted marketing
Drawing from a culturally diverse talent pool allows an organization to attract and retain the best talent
Financial impact and value
Possible when employees
Build trust and create a workplace where people feel free to express themselves
Actively combat bias and systems of oppression
Embrace a variety of styles and voices inside the organization
Seek out employees’ identity-related knowledge and experiences to learn how to best accomplish work
Conversation with Ellyn Schook, CHRO of Accenture
Velocity of change–skate to where the puck is going and not where the puck is
Democratizing learning
On-demand training, enables the pairing of generations, technology will elevate and not eliminate humans, intellectual curiosity for reskilling, and practice skills right away, generational diversity is an advantage
HR plays a huge role in diversity and inclusion. Leaders set the tone, we need to drive change. How do you discover new sources of talent, recruit them, and make sure people are advancing in their careers? How do you ensure pay parity? We must tap into the human emotion of belonging so people can show up and be their authentic selves.
Work trends
Demographic shift, employment relationship, globalization, technology, skills and jobs
Outsourcing, automation and AI, gig economy, and union participation
Jobs that are not critical are sent to third-party vendors
Many jobs are automated or eliminated
On-demand workers, the gig economy, and “precariats”
Gig Work
the number of self-employed has increased in the last few years significantly…some estimates say 30%
16% of the total workforce has had a gig job
↑ greater flexibility, more variety, independence, work-life balance
↓ income volatility, no benefits (e.g., sick leave), fewer strong work connections, lack of security and predictability
Work trends
Demographic shift, employment relationship, globalization, technology, skills and jobs
Cost control, offshoring, cultural competencies
Partnering externally or moving work internally
Outsourcing
Delegation of non-core work activities allows the company to focus on core
Access to specialized expertise outside the company
More economical than hiring or investing internally
Offshoring
Labor arbitrage provides savings
Access to new talent pools for hire into the company
Keeps business processes internal, but moves them to a low-cost location
Work trends
Demographic shift, employment relationship, globalization, technology, skills and jobs
Flexibility, social media, obsolete jobs, AI, Data analytics, cybersecurity
Work trends
Demographic shift, employment relationship, globalization, technology, skills and jobs
Growth mindset, agility, interpersonal skills
Challenges for today’s managers:
Recruit, train, and engage diverse talent in a fast-changing environment of work
Create and manage self-directed teams with autonomy and empowerment
Navigate the changing demographics, age, diversity, employment types
Maintain high ethical standards in a global environment
Align employees with overall goals through people management practices
Identify how to keep independent contractors engaged
HRM Trends: Part two – linking people and strategy
Strategy: fit for purpose
People management philosophies are context-dependent
Ex. commitment vs control
Commitment: broadly defined tasks, high employee participation, highly skilled workers, extensive training, high wages, high benefits
Control: narrowly defined jobs, low participation, low skill requirements, intense supervision, limited training, low wages, low benefits
Commitment vs. Control Summary
People strategies are best designed and implemented for a particular job or set of jobs
Your philosophy may differ across company, differ for employee segments, or be applied differently within one job
Few firms manage all of their employees the same way
Recruited differently
Paid differently
Trained differently
These strategies will have a direct and tremendous impact on the culture of the organization and the ability for a company to recruit and retain good talent