3 HR Trends That Will Impact Your Workforce in 2015
1. Employees are on the move
The Bureau of Labor Statistics reported that the U.S. economy added 321,000 jobs in November 2014, way beyond the 230,000 jobs economists expected. Global workers are starting to look for new jobs as economic growth returns and labor markets begin to pick up, making employee retention among the top concerns for businesses. Worldwide, the trend toward accelerated turnover is expected to rise. Average employee turnover rates over the next five years are predicted to rise to 23.4% from 20.6%. In 2018, 49 million more employees will be heading out the door compared to 2012 – a total of 192 million employees worldwide. (Hay Group)
Managing a dynamic workforce that is constantly changing is difficult, and the future workforce will be far more diverse (with millennial and aging workers), so employee engagement will be essential. Business leaders (not just HR) will need to gain a better understanding of their employees to know who may be a flight risk. 2015 will see a major shift from predictive to prescriptive analytics thanks to smarter systems with science-based technology such as advanced analytics and machine learning (artificial intelligence). These systems will be able to analyze historical workforce data in context with outside data (job market data – open positions, etc.) to determine trends that will give a true, accurate snapshot of employee retention risk and deliver data-driven recommendations on what to do in order to retain top talent.
2. Workers are increasingly becoming “free agents”
The number of contingent, intermittent and seasonal employees is increasing, and business leaders are looking to hone in on how to best manage and source short-term teams. In the U.S. alone, contingent workers will exceed 40% of the workforce by 2020, according to a study conducted by Intuit in 2010.
The definition of a “team” itself is changing and progressive companies are adjusting the way they run their organizations by removing the traditional hierarchy and embracing project-based employment. Many Silicon Valley organizations have acknowledged that lifelong employment and company loyalty are not realistic expectations in today’s business world. Employment models are shifting based on an understanding that a company is its talent, low performers will be cut, and the best way to attract top talent is to offer appealing opportunities. Forward-looking businesses such as LinkedIn have adopted “tours of duty” that give the employer and employee a clear basis for working together - both sides agree in advance on the purpose of the relationship, the expectations for each, and when the tour will end.
As more organizations adopt a new type of team structure, HR leaders will need to adjust how they source workers, and smart technology will play a huge role in this. HR systems will need to be more flexible – ready to adapt to various types of employees, employee demand and different types of team organization in order to find people with the right skillset, experience and relevant project background.
3. The skills gap continues to widen
Critical shortages in talent in specific markets and disciplines have continued to create hiring challenges worldwide. According to Manpower Group’s 2013 Talent Shortage Survey, one in three employers (33%) name a lack of technical/hard skills as the key reason for their difficulties. The hard skills shortage is most commonly explained as a lack of industry-specific professional qualifications or a lack of industry-specific skilled trades certifications.
To fill positions with skilled workers, HR leaders are turning to new talent pools by looking outside the region and even outside the country. Talent mobility is seen as the future of HR, and according to PwC, there will be 50% growth in global mobility by 2020. Finding the right people for these jobs requires a global HR system that is capable of delivering prescriptive advice on the best candidates within an organization, regardless of location.
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Leighanne Levensaler is the Vice president of HCM products at Workday and former principal analyst and director of talent management research at Bersin & Associates. |
