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Top Five Emerging Trends in Human Resource Management

How has the HR services evolved in recent times? What are the future drivers in the HR industry?  How will HR create a better user experience? Why do HR exists in any organization?

In the recent edition of “People Matters“, Vikram Choudhury writes on the HR Industry story and the Disruptions for Growth. I present to you the major bullet points of the story. For complete and detailed reading, grab your copy today.

From a mere “transactional” role, the HR department is expected to rise and become a better service provider. Businesses are becoming mature and hence expectations and delivery from the HR department is growing tremendously. In my current post, I would like to touch upon the Top Five Trends in Human Resource Management that will emerge as a “GAME CHANGER” for those in HR.

1. Recruitment Services

  • Demand shifting to outcome based expectations
  • Consolidation is on the cards
  • Quality and timelines will be key to survival
  • Failing to adapt can prove to be fatal
  • Time to invest in Talent

Opportunities:

  • Positive hiring outlook in companies
  • Staffing and temporary recruitment
  • Managed Services

Threats:

2. Learning and Development Services

  • Learning budgets have shrunk in organizations
  • High demand for leadership development
  • Evolution of the partnership model
  • The emphasis on quality will rise

Opportunities:

  • Leadership development
  • Technical and supervisory skills
  • Gamified learning

Threats:

  • Uncertain political and economic market conditions
  • Slowdown in learning budgets
  • Changing demand patterns

3. HR Technology

  • Tech segment to mature faster than other segments
  • The increasing influence of cloud and analytics
  • Social technologies continues to grow
  • Technology companies to focus on the SME space
  • Traditional business models may become ineffective

Opportunities:

  • Cloud-based technologies
  • Analytics
  • Socially integrated products

Threats:

  • Dynamic demand landscape
  • Finding key talent
  • Low awareness of consumer market

4. HR Consulting

  • Companies should build base for future growth
  • Technology is changing nature of demand
  • Time to develop specific expertise
  • Engagement and productivity will be key

Opportunities:

  • Global expertise
  • Specific HR services
  • Skill and operations consulting

Threats:

  • Low margins
  • Low discretionary spending of consumers
  • Talent availability

5. HR Outsourcing

  • Service providers have to build value-added services
  • RPO will come in a big way
  • Opportunities from HR’s changing role

Opportunities:

Threats:

  • Talent availability
  • Low consumer maturity
  • Expectations of global standards

 With challenges comes a time of great opportunities. Good times lies ahead for the HR industry. There is a significant advantage for companies who have deeper knowledge of market conditions. Customizing product offering based on local conditions will help companies have competitive advantage in the market.

Do you think of other areas which can prove vital for the HR industry? Are there any other vital challenges that you can think of? Do share your inputs in the comments section.   

  • rocky24 says:

    thanks for sharing this article. Nice article. HR consultant plays main role in employee management, talent management, leadership training.
    http://www.basilhr.com

  • mathias ambali says:

    Amit, thank you so much for sharing with us the Top Five HRM Emerging Trends. I have heard through our discussion some people say, “Human Resource Department is an overheard cost in an Organization.” How would you measure the results of Human resource policies and practices in an organization to prove that it has a significant role to play?

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