hrtech.sg has released its “2023 HRTech Market Outlook Report” that identifies the 18 HR Tech tools redefining how organizations manage their human capital.
The report highlights the need for these tools and platforms that support business and HR teams in digital coaching, internal talent mobility, workforce planning and intelligence, compensation planning, and employee mental wellness.
The report underscores the emergence of new workplace and workforce trends following the pandemic, which are driving the adoption of these technologies.
“The ongoing job market is unsettling,” it says. “Organizations are laying off people to cut down costs, while on the other hand, employees are quitting even if it means fewer jobs in the future.
“Just like business models, skill sets will shift too. Organizations need to redesign their job roles and build internal talent capabilities through training. The solution is hence not to lay off people in fear of getting less demand (because demand has not been halted, it has merely shifted) but to reskill, train and develop them to enable talent mobility.
The report also outlines characteristics of Sustainable Human Resources, including a Long Term Orientation, being ESG Based, ensuring stakeholder wellbeing, maintaining profitability, sustaining Fairness and Equality, and providing holistic care for employees.
The Five Key HR trends established by the report are
Trend 1: Flexibility is the New Normal
Employees demand work flexibility According to a LinkedIn survey, employees who are offered flexibility in terms of time location of work are 2.6 x more likely to be happy at work and 2 1 x more likely to recommend others to work for their employer
As ironic as it might sound, to make work flexibility a success, organizations need a proper structure in place Too much flexibility can create confusion and blur out the personal.
Flexibility also involves acceptance and understanding of the Gig economy, systems of Earned Wage Access (EWA), employee Moonlighting, and alternative schedules such as the Four-Day Work Week.
Trend 2: Employee experience in a hybrid workplace
Icreasing focus on enhancing employee experience is reshaping the approach towards work, especially after the pandemic. People do not just come for their paychecks anymore. They want more value adding and purpose centric work from their workplace, and expect a more fulfilling experience at work.
The idea is to foster autonomy with togetherness. Employee Experience 2 0 typically pivots on delivering a top notch employee experience in a hybrid workplace By prioritizing communication, flexibility, inclusivity, wellness, and feedback and recognition, employers can create a work environment that drives business success while supporting employees.
Key trends include addressing the engagement of Deskless Employees working without designated workplaces, adopting People Centric Design Thinking, ensuring Holistic Employee Well Being, and accepting Boomerang Employees who have returned after the Great Resignation.
Trend 3: Skill is the New Currency
The future of work will embed L&D for the purpose of growth, and not just learning. Why? As Josh Bersin puts it, there’s no point creating or building a capability unless it can help you grow, expand, and do new things.
With technology advancing at a rapid pace and new job roles emerging, employees must continually upskill and reskill themselves to stay relevant and competitive. In this context, skills are becoming the new currency that can open doors to new opportunities and advance careers
Organizations are increasingly shifting to a skills led hiring approach wherein candidates are assessed and hired based on their talent, competencies and capabilities, and not just basis their educational qualifications and past experiences Resultantly, employees with a strong skill set are more likely to be sought after and have more negotiating power when it comes to salary and benefits
Trend 4: Data & Tech Centric HR Function
The rise of big data and advanced technology has enabled organizations to gather and analyze vast amounts of data on their employees, giving HR teams access to valuable insights and information. Moreover, the use of technology in HR processes has increased efficiency and productivity, allowing HR leaders to focus on more strategic initiatives.
The trend towards data and technology centric Human Resources is being
driven by the need for organizations to remain competitive in an increasingly complex and rapidly changing labor market landscape.
By leveraging data and technology, organizations can better understand their employees’ needs and preferences and make informed decisions that drive employee satisfaction, engagement, and retention.
Trend 5: Organizational Redesign & Workforce Effectiveness
The pandemic has forced many organizations to re evaluate their traditional working models. With new roles emerging and others becoming obsolete, organizations need to reassess their workforce skill sets and invest in employee L&D programs to help them adapt to the ever changing market dynamics
As organizations today work with multifaceted, diverse and inclusive workforce, workplace processes and policies need to undergo some structural changes to accommodate needs of each segment of the workforce.
Organisation redesign look set to consider Multigenerational Workplaces, and giving Diversity-Equity-Inclusivity-Belonging (DEIB) board level prominence.
According to Sriram Iyer, Founder & CEO of hrtech.sg, “HR has taken the front seat in navigating enterprises from the uncertainty created by the pandemic to adapting to new ways of collaborative work. The HRTech Market Outlook Report provides valuable insights into the latest HR and HRTech trends, enabling CHROs to achieve their digital HR transformation agenda, creating a seamless employee experience, and delivering stronger business outcomes.”
