Recent Trends and Future of HR

Published by MBA Skool Team, Published on October 29, 2015

People are the important assets of an organisation. In the future years to come the most essential task of recruiters is to unearth the potential candidates from a pool of talent and major decision will be to decide the right fit for the job. The conventional methods of recruitment are fading away and new techniques are emerging, right from face to face interview to the video interviews and video resumes. Gone are those days when people were dependent on advertisements for information regarding the job vacancies and job profiles in newspapers.

The average Indian age in workforce is of 27 years now but in subsequent years this is going to be around 24 - 25 years which will give India an advantage over other countries. The recent trends of HR are emerging because of the advent of the new generation of millennials or generation Y. The studies are going on how to manage the workforce consisting of millennials. The millennials are of different mind-set, they are more tech-savvy, feedback seekers and result oriented. Considering the nitty-gritty framework of HR the role of HR has evolved over the years. The administration role of HR is in back drop, HR is now playing a strategic role and of a business integrator more than any other role. In simple terms, HR is business and business means resources and resources are to be managed. Another important finding is the students opting for HR as career are more from psychology background. Psychology helps to understand the candidate and find out if the candidate is right fit for the job or not. It gives them an added advantage.

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Recent viable trends are social media and Big Data analytics. Technology is going to be one of the lifelines of recruiters. HR at technology is at a very nascent stage. This has to go a long way. Along with that other areas like change in performance management system, restructuring of compensation and benefits, employee retention techniques are also coming to the front.

Firstly, the use of Social media to find the potential job candidates and passive job seekers is increasing. The recruiters are leveraging social media to access the candidates. The social media platforms like Linkedin, Facebook, Twitter etc are empowering the citizens to raise their voices in public forums. The 3 C’s to access the candidate is Competence, Commitment and Character. The competence and commitment can be measured through behavioural interviews, past records, experience, technical skills and domain knowledge. But to access the character of a candidate the most important factor is to determine how well the person is socially connected. Here, Psychometric tests come handy but it is still unreliable and uncertain. So, leveraging social media is the new trend that is going to set in. Prediction says the social presence is so eminent that next tab by the side of “friends” tab in Facebook will be “Job Profile”!

Secondly, Big Data Analytics and cloud is becoming popular for recruiting purposes. It is becoming highly useful taking into account the easy accessibility, storage, high processing and low operating costs of data. The need of the hour is to find out the right data because a lot of data is available. Predictive analysis can be used for selection and forecasting talent. E-recruitment is gaining grounds. Also the job boards, simple algorithm software matching the job profiles with the professionals has become viral in the HR world. Cloud gives the opportunity to share data immediately and to store documents. Emergence of the Chief Digital Officer (CDO) in organisations. Companies have put a more emphasis on digital content. So, the rise of the CDO is becoming stronger to manage the huge data.

Thirdly, Recruitment is going mobile. Mobile is a more personalised device that is why the candidates are now researching and applying jobs in mobile optimised formats. It’s an era of smart phones so every other thing is getting customised to its requirements. Training and performance support applications are coming up.

Fourthly, maintaining diversity is the next challenge at the workplace. 55% of HR leaders think women in senior leadership roles will be critical success factor to the business growth. Women after certain time quit job due to personal reasons but companies are now taking efforts to trace them and recruit them back to the similar job they were allocated. The methods include providing flexibility and giving opportunities to grow. This strengthens the employer branding image. Also, including the differently-able people in the organisation and training them for future so that they can be assets to the organisation is another step that is being taken. Diversity is going global.

Fifthly, Recruitment techniques may shift to the employee referral programs in future because of the talent scarcity that will be created in future. Managing talent will be a challenge. At least 60% of their new hires will be through employee referrals. 51% of employed workers are actively seeking or employed to the new job. The reason is sourcing passive talent is difficult otherwise and also survey says that hires through employee referrals stay longer. The quality of hire is also suitable because it is attached with reward per hire to the existing employee as a motivation.

Sixthly, HR needs new marketing channels. Marketing managers use segmentation for target customers. Likewise, HR needs similar lines to find the right talent. This can be done through Employer branding, identifying right channels and having a cohesive plan.

Seventhly, Outsourcing is going to hover over the organisations along with temping as the recent trend. This process will actually reduce the cost of hire, time of hire, number of applications, sources of hire.

Eighthly, Compliance is critical. Background verification, hiring process, rehire check, exit interviews, documentation processes with statutory obligations and recruitment practices aligned with compliance needs will be critical.

Ninthly, Performance management system will be revolutionised. Companies are getting rid of bell curve. Performance management system is turning into performance development or continuous feedback mechanism systems. Feedback Apps are on rise on mobiles. For example, PD@GE (Performance Development at GE) is developed by General Electric is an instant feedback app.


Employers plan to increase their investment range of recruiting methods:  73% in social media, 51% in mobile technology, 75% will use social media for employer branding, 51% to include diversity and 63% to improve quality of hires through employee referrals.

Over the next 10 years, the biggest challenges the HR in the organisations is going to face is retaining and rewarding best employees, developing the next generation corporate leaders, creating a corporate culture, finding employees with specialised skills, striking balance between employee centric and service oriented organisation.

Over the next 10 years, the most effective employee retention tactics will be providing flexible work arrangements for work life balance, proving credibility, open communication channels, offering better reward packages than competitors commitment to employee development, meaningful work with clear goals settings, encouraging employees to make decisions and take risks, having latest technology to maximise work efficiency and effectiveness, creating inclusive work environment, committed to corporate social responsibility and sustainability.

In the next 10 years, the most important competencies that will be critical are business acumen, organisational leadership, ethical practices and relationship management.

In the next 5-10 years, candidate and job matching will improve by 53% and 46% of recruitment strategies will be like marketing.

Change is the next challenge. So, early adapting organisations to change and sustaining to the change and agility to again move to another change will be the successful ones in the long run. If technology is used intelligently then it can help the recruiters to find the right fit for the right job in the right organisation. Need of the hour is integrating recruitment, technology, analytics, people and business decisions.

In short, the three A’s that will govern the future of HR is Agility, Adaptability and Analytics.

This article has been authored by Manisha Manaswini from XIMB


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