The impact of HR trends on mobility, talent, and reward Bookmark has been added
The impact of HR trends on mobility, talent, and reward
This year's Human Capital Trends survey results revealed three key trends that could have a significant impact on mobility, talent, and reward.
- HR trends
- Trend 1: The complex workforce
- Trend 2: The lack of HR skills and capabilities
- Trend 3: The rise of teams
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Deloitte’s Human Capital Trends annual survey is one of the largest HR studies. The report identified several potential workforce changes, which will have a fundamental impact on global deployments, international reward structures, and talent development programs now and in the future.
In this report, we have considered the trends identified and have evaluated the impact
Trend 1: The complex workforce (The gig economy)
There is a lack of understanding among leaders as to who and what their workforce comprises and how to manage today’s diverse combination of worker types.
Talent now needs to understand a new cadre of individuals—those within the organization with a range of backgrounds, generations, aspirations, but also those outside the organization. Alongside this, mobility may need to expand the range of assignments (e.g., swap schemes, project workers, and commuters) to encourage international moves.
Talent will face the initial task of attracting, managing, engaging, and retaining a diverse set of individuals with a range of contractual relationships with the organization. An increasing use of sources, such as LinkedIn and Topcoder, are likely to become commonplace.
Traditional reward approaches may no longer be suitable. Challenges, such as compliance implications, associated with cross-border remuneration come to the surface, as well as the question of fairness in reward for employees versus contingent workers.
Trend 2: The lack of HR skills and capabilities (HR capabilities)
HR needs to have skills, which facilitate the understanding of business strategy and allow HR to leverage future technology. There is a gap in the understanding of wider business strategies, preventing HR from effectively embedding and aligning themselves with the business.
Talent needs to focus on recruiting and training individuals across mobility, talent, and reward with the future skills required. The brand of the organization will play an important role and so, the culture and strategy need to be clearly defined and communicated.
With the need to focus on strategic activities, it will be necessary for administrative processes and tasks to either be outsourced or offshored. Mobility will need to determine the right tasks to transition, depending on volume and level of standardization.
The reward approach needs to be agile to support exponential changes to business strategy. As a first point, though, the wider business strategy needs to be understood by the reward professionals to ensure the reward strategy supports this.
Trend 3: The rise of teams (Organizational design)
There is a movement toward a network of teams, whereby small teams deliver results faster, engage people better, and stay closer to their mission. The digital revolution helps teams stay aligned.
Traditional performance management will need to evolve to accommodate this shift in the organizational structure—global and more project-based objectives will become more important.
As we move toward a culture with less restriction on where talent comes from, organizations are starting to look at the global supply and demand matching. In particular, we have seen a rise in supply/demand technology tools taking a global approach.
This may mean a rise of employees (and contractors) in different locations, working together. This is likely to increase the volume of short-term, project-focused assignments, and business travel.