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HR has evolved dramatically over its relatively short lifetime, transforming the historical view of people as expendable and distinguishing employees as one of the modern organisation’s most valuable assets. Despite the many changes HR has undergone, the profession shows no sign of slowing down. In fact, I expect to see HR soon having a greater influence on business performance than ever before, particularly as it begins to shape the future of work. For HR professionals, it’s important to ensure that the leadership team is already discussing these changes, or is willing to embark on the transformation journey.

So, what does the future of HR look like?

A Broader, More Agile and Strategic Focus

HR is becoming more and more strategic; gone are the days where a company’s employees can be considered as one entity, with policies and goals affecting everyone in equal measure. In this sense, the main focus of HR has narrowed somewhat – rather than making broad strokes, it will increasingly work with key leaders to tackle people-based issues. At the end of the day, it’s about managing everyone’s role in the long-term success of an organisation.

This evolution of HR has also resulted in a much more commercial landscape. It looks like the future will see even more awareness around how HR can impact the bottom line of a business with company leaders starting to think about what facets of business should be covered by the department going forward.

Following on from this, companies will have to be more adaptable and agile in the future – not only in business, but the way they employ people. One of the biggest influences on changing work environments is the growing acceptance of flexible hours and non-traditional pay structures. Studies have shown offering more freedom to workers can improve productivity by decreasing the amount of paid leave employees take and increasing overall happiness. Think about what’s right for the company, because what has always been done before may not be what works best now.

In addition to adapting to changing HR trends, we also need to become more aware of government regulations and how they’ll affect current operations. For example, changes to legislation in healthcare and finance may have a significant impact on HR, so it’s vital that companies are up-to-date and prepared to make changes in response.

The Rise of Technology

How has technology changed HR? It’s an important question, but one that’s better answered looking forward, rather than back. The increase in implementation of Artificial Intelligence and other automated systems means businesses are now investing more in smart tech for better reporting and data analysis. This ultimately helps improve company decision making. Plus, delegating smaller tasks to technology will allow HR to spend more time on the tasks that help people succeed.

Remember, as digital HR technology becomes more widespread in the business world, HR will need to step up and lead by example. Whilst it may seem counter-intuitive, the increasing use of technology will actually give a new focus on user experience, as HR software shapes how people interact with and see your company. Taking advantage of that sooner, rather than later, is the key.

A Modern Business Culture

In the future of work, the culture of a business will become more important than ever. Keeping up with changing technologies is one necessary aspect, but company perception needs to be effectively groomed from every angle. It’s up to HR to manage the brand and ensure the business is and remains attractive to internal talent. It can be tempting to think once employees are onboarded, the job is done – but, of course, not only does HR need to be there to support any issues people may have, it also needs to be aware of how the culture lives up to the expectations of those who join. If HR cannot maintain quality and consistency, this will impact overall retention.

One example of a poor work culture is failing to provide internal opportunities for career development. In the past, raising pay and giving recognition were considered suitable motivators, but in today’s world, employees prefer a sense of upward motion. If they aren’t given the chance to grow, they may start looking elsewhere.

In addition, transparency is also a central issue in the current landscape. Businesses face increasing pressure to be more open about their ambitions and views. This openness is beneficial because it ensures everyone is aligned and fully motivated, resulting in a further boost to loyalty.

Summary

Whilst it’s true that no one can be entirely certain what the future holds, it seems clear that HR will continue to become more commercialized, flexible, agile and adaptable in the years to come. Candidates will be looking out for organizations that are actively moving in this direction or open to exploring these kinds of changes.

When it comes to HR, it’s easy to pigeonhole the industry into certain tired frameworks – but in reality, HR exists as a platform for so much more. As the industry continues to evolve, old habits will die out, and people that look forward and seek out new ideas are the ones who will ultimately thrive in the changing landscape.

To discuss your thoughts on this, or if you’re looking for support in navigating your Sydney HR recruitment needs, get in touch with me.