One of life’s guarantees is that change is constant. For employers, the rate of change in technology and how we communicate is having a tremendous impact on workplace culture. For the first time in history, there are five generations at work together. The business implications of such a diverse workforce working side by side cannot be overestimated. For HR, adjusting strategically while employing the proper suite of technology is essential.
By 2025, Millennials will make up 75% of workforce population*. Today, this group is estimated to make up only 34%**. Organizations must be ready for this transition in workforce demographics in order to maximize not only productivity, but also profitability. How to attract, hire, incentivize, retain, manage absences, create a culture that resonates with the modern workforce, as well as how to measure and reward productivity all play a role in HR’s future success. Selecting a suitable Human Capital Management (HCM) platform to simplify these efforts is central in this effort.
For an expanded report on this topic, click here.
The Rise of the Strategic HR Director
The role and influence of HR is evolving rapidly from a largely-administrative role to a strategic one. There are numerous workplace trends evolving today that must be accounted for by HR and addressed strategically, beyond demographics and technology. For good reason, HR is more frequently being promoted to the C-suite. But… is your own organization and HR department prepared for such changes?
5 Key Trends for HR and How HCM Can Help
Talented employees are a scarcity today and labor costs are rising. As a result, retaining your employees may be growing in difficulty and importance. Here are five key trends that HR should consider strategically as it competes for talent, and how a Human Capital Management (HCM) suite can help.
- Are you considered a top employer in your area? Social media is one of many factors changing workplace culture and how companies market themselves to future employees. If your company wasn’t on the latest list of “best places to work” in your area, perhaps you’re wondering why and what organizations are doing beyond potlucks and free soda to get noticed.
- While there are many details to answer this question, an HCM suite is an important tool in simplifying how employers offer benefits to its employees. HCM reduces the complexity of administering such benefits, as well the cost and impact on managerial productivity. Such benefits include work-life balance, better control over work schedules, improved access to time off, and better benefit administration.
- Are you practicing modern performance management? - Many incentive programs exist to enhance employee performance. Many practices of the past, however, such as annual reviews are not real-time and don’t adequately impact day-to-day performance. With an HCM suite, this challenge better address performance management in the modern workplace.
- Accommodating remote and/or mobile employees. The millennial generation is arguably bringing forward a transition from “Live to Work” to “Work to Live,” where remote work is common and work-life balance often takes priority over long hours and extended years of tenure with the same employer. With a modern HCM platform, employers are better able to provide employees proper tracking tools and transparency for employees to manage their HR services, such as scheduling and time off.
- Is your HR staff fluent in compliance requirements? Compliance is a growing challenge for all employers, whether on a state or federal level. HR leaders must be armed with the proper resources and tracking tools to properly manage compliance requirements. This includes wage and hour law, ACA, and leave management compliance. An HCM suite is a tremendous help in supporting and enforcing these regulations. Further, a weak compliance program can be a serious liability for employers.
- Are you taking advantage of workforce data? Data is shaping the HR role more than ever before. In the past, data was captured but was rarely organized and made available for timely, strategic decision making. With HCM, now you can know what your data knows and use it to drive both productivity and profitability.
For an expanded report on this topic, click here.
Are you curious to learn more about implementing a market-leading Human Capital Management suite within your organization? Contact a HCM specialist at Payroll Link today.
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*Daniel Schawbel, 74 of the Most Interesting Facts About the Millennial Generation (June 25, 2013), found at http://danschawbel.com/blog/74-of-the-most-interesting-facts-about-the-millennial-generation/.
**Richard Fry, Millennials Surpass Gen Xers as the Largest Generation in U.S. Labor Force, Pew Research Center (May 11, 2015), found at http://www.pewresearch.org/fact-tank/2015/05/11/millennials-surpass-gen-xers-as-the-largest-generation-in-u-s-labor-force/.