2021 is a year like no other. It’s the onset of a post-pandemic era where we have gotten used to managing life from the comfort of our homes.
Thus, the ideas trending this year are quite different from the pre-pandemic years and much more prospected than 2020. A few generic trends that have topped this year would be the emphasis on clean technology, a demographic shift towards the young, emergence of new markets.
The recent trends seen in international human resource management are no exception.
They prompt a drastic shift in the strategies followed by HR. Particularly they are more aligned towards employee centricity in contrast to the pre-pandemic work-centric strategies.
With no further adieu, let us look at the global trends in HR practices in 2021.
Embracing Remote Working
A recent Gartner’s analysis shows that 48% of employees are likely to continue working remotely post-pandemic. This is a 12% hike from the 30%, pre-pandemic. Also, 74% of CFOs intend to increase remote work at their organization after the outbreak.
The above survey explains the shift in the mode of working. The goal of HR during this shift included making the transition as smooth as possible, for the employees. Accommodating the entire technological infrastructure virtually was an unanticipated challenge and they played a major role in ensuring the employees face as minimal inconvenience as possible.
Work and Wellness
As the trend shifted to employee-centric strategies, the personal well-being of employees caught the limelight.
According to Gartner’s 2020 ReimagineHR Employee Survey, there is a 23% increase in the number of employees reporting better mental health when employers develop deeper relationships. Also, employers who provided holistic support witnessed a 21% increase in productivity, high performers.
Thus, building deeper connections eventually leads to increased employee satisfaction and productivity. The HR professionals need to motivate employers towards the same as the focus on mental health and its connection with productivity is apparent.
Administering Progressive Benefits
The idea of a job rings a different bell in today’s young minds. They seek an open work culture with accommodating mentors, opportunities to innovate, flexible working hours, etc. They also expect progressive benefits such as more family time, the option to choose remote working, extended vacation time, paternity leaves, etc. Inclusion of progressive work culture has become a necessity, and the focus must lie on integrating it in a way that is beneficial to both the employer and the employees.
Employees are no longer liabilities, but resources that employers can invest time and money in. This “employee is an asset” mindset must be adhered to, by companies to seek the full potential of the talent pool. The HR teams must look into empowering them with skills that improve career development. Professional courses and approaches to updating their technical knowledge add value to the individual and empower them to face future challenges.
Globalized Talent Pool
Another global HR strategy that became trending in 2021 is the globalization of talent acquisition. Previously, the geographic location and consent to relocate was an essential aspect of hiring.
This took a major step back during remote working. Globalization enabled cross-border recruitments to unfold a vast array of talent pools to choose from. After all, hiring the top talents has always been HR’s top priority.
Globalization of the talent pool enabled diversity. A wider array of people can be included irrespective of their country, race, or language.
Thus, in a way, this new strategy and trend unifies the work environment and creates better opportunities on a global scale. Also, this diversity is a mandate for the global growth of the business.
Another major trend in global HR is the inclusion of contractors or part-time employees. The previous annotation of preferring only full-time employees was erased due to remote working and globalization.
However, care must be taken to manage distinct policies and maintain separate contracts and other norms for both types of employees.
Cross Border Compliance
The inclusion of global teams is easier said than done. There are several local laws and compliances in place that differ from one country to the other. We must be well aware of and abide by them to set up a functioning team. The entire process can be streamlined and managed with EOR (Employer Of Record) tools such as Multiplier.
Data is the new oil, an untapped valuable asset. The practice of transforming the HR data into actionable insights unleashes the potential to take more strategic and informed decisions.
According to DDI, organizations who excel at people analytics are 3.1 times more likely to outperform their peers.
Interrogation of collected data is thus crucial in establishing a successful business.
AI in HR
The next global HR trend is the use of AI in HR. With AI being integrated into our everyday tasks, this comes as no surprise.
AI-driven process and decision automation speed up the HR tasks while improving the quality. Optimization of the human-automation combination is bound to transform the future of the HR domain.
Cloud-based HR Tools
HR tools have made life easier in the remote world, for both employers and employees. The use of PEO (Professional Employer Organization) tools for the virtual onboarding of new employees has served companies to a greater extent, especially during global hiring. They declutter the entire process thereby, simplifying it.
The past year witnessed a revamp of the entire human resources domain, shifted focus, and provided valuable lessons. 2021 can be seen as a year to reflect upon- the year of implementation.
These global HR trends empower, transform, and enable the reimagination of a workplace setup. With that said, we can look into the tools that help us utilize the full potential of this reinvention.
A globalized work setup brings several challenges of its own. Each country has a unique currency, tax regulations, and payroll processes. The global payroll feature of Multiplier addresses this challenge and provides an uncluttered payroll workflow benefiting both the employee and the employer.
Also, maintaining a separate set of policies, contracts and following distinct norms for contractors and full-time employees worldwide can pose a challenge. We, at Multiplier, can help you declutter and address this challenge.
Thus, Multiplier assists in the alignment of businesses with the existing international HR trends and paves the way for an empowered and successful future. Contact us to learn more.