The HR Department of 2020: 3
Bold Predictions
The human resources department will disappear in a matter of
years. All HR functions will be taken over by software or outsourced. At least
that’s what some are saying.
They’re wrong.
Yes, software is changing
how HR operates. But instead of spelling the the demise of the human resources
function, experts predict these changes will allow HR professionals to grow. Software Advice interviewed
industry analysts and HR practitioners to better understand what will change
and why, as well as find out how HR professionals can prepare.
Prediction 1: In-house HR
will downsize while outsourcing will increase.
While this prediction may seem somewhat, well, predictable,
the reasons experts give for the change might surprise you.
Brian Sommer, an industry analyst and the founder of
TechVentive, explains that new technologies--many of which allow for employees
to participate directly in HR processes through self-service systems--will
drive the shift to leaner in-house HR departments. As he says, “Many businesses
are going to get a lot of capability done by better technology, more
self-service and the employee doing a lot on their own.”
Meanwhile, Dr. Janice Presser, CEO of The Gabriel
Institute, predicts many transaction-heavy HR jobs will be outsourced
entirely to agencies or specialists, saying, “Entry-level HR jobs, as they
currently exist, will all but disappear as transactional tasks are consigned to
outsourced services.”
However, despite these trends the internal HR function will
survive. Chip Luman, the COO of HireVue, explains that, “Given the ongoing
regulatory environment, the need to pay, provide benefits, manage employee
relations issues, and process information will go on.”
Prediction 2: Strategic
thinking will become in-house HR’s new core competence.
The HR department that remains will need to reposition itself
as a strategic partner within the business. In fact, SHRM’s 2002 report, The
Future of the HR Profession predicted the trend toward leaner, strategy-focused
HR departments 11 years ago.
More recently, an Economist Intelligence Unit report
highlighted the need for C-level management to partner with HR departments as a
prerequisite to drive growth. The experts agree, and most emphasized HR’s need
to increase its strategic value to the business--or else. Dr. Presser says,
“This includes the ability to make accurate projections based on understanding
the goals of the business and using metrics that describe more than lagging
indicators, such as how long it takes to fill a job or the per-employee
training spend.”
This strategy role cannot be outsourced. As Dr. Presser says,
“Strategic planning requires in-house expertise.”
Prediction 3: Managing a
remote workforce will be the new norm.
Companies like Yahoo and Best Buy recently ended their remote
work programs. These companies are the exception, not the norm. Undoubtedly, HR
will have to tackle the challenge of managing a growing remote workforce. Luman
points out that companies will need “to leverage employees where and when they
are most productive and impactful”--even if that means they’re halfway around
the world.
But managing employees from afar isn’t a skill you can pick
up on the fly. Dr. Presser cautions that, “The trend toward remote workers is a
growing challenge to managers who are not effective in managing people at a
distance.”
To help HR departments and line managers adjust, automation
will play a large part in successful remote management. Wim de Smet, CEO of
Exaserv, predicts that “New technologies will be used to analyze the work
production instead of the working time. Results will become more important and
business will expect HR to be producing more result-driven performance
analysis.”
Preparing for 2020
With so many changes on the horizon, what can current HR
professionals begin doing now to prepare? The experts endorse three key
tactics: keep learning, be active in your field, and take risks.
“Get ahead of the curve,” Dr. Presser advises. “Realize that
many of today’s ‘best practices’ evolved under very different business
conditions, and may well become obsolete within this decade. Learn everything
you can about your industry, your competitors, and pending legislation that
affects your business operations. Most of all, define yourself as a
businessperson and act accordingly.”
Finally, Luman encourages HR professionals to find their own
voice and be active. As he says, “Network inside and
outside of your field. Blog, communicate, read and help others achieve success.
If you are not outside of your comfort zone, you are stagnating.”
Erin Osterhaus is the
Managing Editor for Software Advice’s HR blog, The New Talent Times. She focuses on the HR market, offering advice to industry professionals
on the best recruiting, talent management, and leadership techniques. For the
full article, click here.
Thanks, Erin!