2023 has brought new trends and changes in human resource management that will affect us all. We reveal 5 of these trends from the hands of Tiago Santos, recently voted as the number 1 influencer in HR in Spain in the GOintegro ranking.
- Importance of the Department and above all the Director of Human Resources, This is the main trend and which has been observed since the beginning of the pandemic. The HR director has gained an importance in the company that he did not have before. The need to provide legal/labor protection to the CEO and the company, and the importance of guaranteeing a strong culture (fundamental in times of crisis) determined that more and more HR directors are part of management committees. Currently, the Director of Human Resources is one of the most relevant C-levels in the company (a position they did not previously hold). In smaller companies, the figure of the people manager became essential. Let us keep in mind that many companies with less than 20 employees usually do not even have an HR manager and most companies do not have a specific budget for the HR area.
- teleworking as a worker requirement, We are no longer talking about social benefits or a weapon to attract talent. Today, teleworking is a necessity, a right collectively achieved by employees. According to InfoJobs, the number of vacancies offering teleworking has doubled from 2021 to 2022, and is 10 times more than two years ago. Recent studies in the United States, such as those conducted by payroll provider ADP, show that two-thirds of workers would consider looking for a new job if they were unnecessarily forced to return to the office full-time. Are. In Spain, some recruitment consultants even stopped accepting job offers that did not include teleworking as a social benefit due to the limited availability of candidates open to accepting them. Companies that do not offer a flexible solution in the context of teleworking in 2023 will have serious loyalty problems for their employees.
- Emergence of HR Tech, Technological solutions are currently emerging in the market to answer practically all the needs of a department that is not very digitized such as HR. The increase in budgets of these departments and the need to meet the growing needs of workers and comply with legal requirements such as time controls, for example, led to the emergence of a range of companies and startups with interesting propositions for HR departments. From comprehensive workforce management to organizational health and wellness, internal communications and remote work management, personnel selection, compensation and benefits (highlighting pay on demand) and assessment, development and management of talent. There is an application or digital tool for everything a human resources manager needs today. Surely more unicorns will emerge in Spain in HR tech after the recent cases of Factorial and Cobi. The challenge here for the HR manager is to calculate the ROI (“return on investment”) to justify that investment.
- emotional well-being of employees at the center, This is a fact of our society and luckily it is no longer a taboo subject. Mental health is on the agenda and reaches companies too, thanks to HR. According to AMAT (Association of Mutual Insurance Companies for Work Accidents), in Spain, work stress causes about 25% of sick leave, causing companies direct losses of more than 25,000 million euros per year and indirect losses of 55,000 million Is. From 2021 onwards, mental health problems are the second cause of work absenteeism, representing long-term absenteeism (with three times longer duration than other causes of absence). The HR department has to take action. From talking about the topic in general worker meetings to offering solutions from prevention to help when looking for a mental health specialist, total confidentiality guaranteed. There are already several solutions in the market that they offer, including unlimited consultation plans with psychologists and mental health experts, such as OpenUp, which has just entered the national market.
- People Analytics (Utilizing Data in the Service of HR), This is not specific to human resources, as data analysis is a reality and a necessity in all departments of a company. And this is not even a trend of the future, but we have known for a long time that storing, managing and analyzing data is essential for making the right decisions. But due to the paucity of resources and time, the actual use of data in the service of HR was not yet possible. This was not a priority for the department that has gone from emergency to emergency in the last two years. There was also no “normal year” run that would have allowed data comparison. Now that everything is starting to stabilize, that’s a concern, as the numbers will continue to be strong, even in the department where people are the center of attention.
These 5 trends will undoubtedly mark the year 2023. A year in which technology and people will co-exist more than ever. It may sound contradictory, but It is indeed the increased use of technology that will allow HR departments to focus on people, Less bureaucratic procedures, more tools that will allow automation and simplification of processes. All of this is for the benefit of a department that is growing in importance and from which more human leaders will emerge with weight and prominence in companies.