Trends shaping Human Resource Management

HRM301 (SPR-2023/M-16325)
Aamna Kamal (20211-30190)
2nd February 2023

Workforce demographic and diversity trends

 Organizations should now focus on healthy balance between younger and older
employees when it comes to demographics.
 Creating country’s own local workforce is just as important as bringing in a large pool of
foreign working professionals
 For example, there is now a lower % of working population in countries like China or the
US, where in the former, it would be dropped to 20% by the year 2050.
 HR analytics can help to prepare for identifying issues with aging workforce and its
impact on business success.

Trends in Jobs People Do

 The biggest trend in jobs is the shift from manufacturing to service. Majority of the firms
now employ on-demand services from workers who aren’t employees due to outsourcing.
For example, Fiverr, Gembah.
 Increased innovation in technology is making manufacturing jobs high-tech. This leads to
development of superior human capital with the integration of tech and human expertise.
 Cognitive soft skills are more prioritized when it comes to the success of the company
but it is hard to assess them.
 People also prioritize flexible work arrangements for e.g. through a LinkedIn survey,
78% organizations now mention work flexibility since 2016.

Globalization Trends
 After the formation of economic free trade areas, it has led to the creation of globalized
competition which subsequently means companies investing more in production to
provide ‘world-class’ products.
 Companies want to achieve this quality at lower costs thus they seek cheap labor and
resort to outsourcing services and operations.
 Example of such companies are
o Unilever: carries HR services in centers in Manila, Bangalore, Prague etc.
o Walgreens: deals with BPO provider in India to handle accounting process.
o Goldman Sachs: support service hired through 6,000 workers in Bangalore.
Economic Trends
 Governments around the world have stripped away many rules and regulations which has
led to increased investment banking, subsequently leading to more businesses and
consumers being in debt.
 A trend of slower productivity is also observed due to inflationary pressures; however,
this can be fixed through automation of workforce.
 In the US, there is a slower growth of labor force due to labor force participation rate
falling. This has led to “talent management’ being a primary concern for HR departments
around the world.
 An unbalanced labor force has led to recruiters unable to find candidates while there are
still ‘wealth’ of candidates. This is because in different industries, the employment rate is
varying highly.

Technology Trends
 Technology is affecting the nature of jobs, even in HR as it is changing how tasks get
done through the use of AI.
 Social media tools such as Twitter, Facebook and LinkedIn are now used as recruitment
tools for HR managers.
 Data analytics are now used to identify and predict employee decisions through statistics,
now known as talent analytics in HR management.
 Artificial Intelligence (AI) is now becoming a integrated part of data management in HR
such as Paradox. The company provides AI-powered assistance for recruiters and job
seekers.
 Upwork also uses AI and automation technology to organize talent pools according to
different markets.
 Augmented Reality (AR) uses large amounts of data and summarizes them into the
physical world. For example, Zapper offers AR toolkits which enables businesses to use
AR to create customer engaging marketing concepts.
 Gravity Jack also uses AR with major companies like Coca Cola, Samsung, Caterpillar
by creating VR services and mobile app designs.
References

A global view on how workforce demographics trends affect employers (walkme.com)

These 4 Job Trends Are Shaping The Future of Your Work | World Economic Forum (weforum.org)

17 Examples of AI In HR & Recruitment You Should Know | Built In

Augmented Reality for business: here are 25 AR companies to watch • Startups Geek (creative.onl)