The human resources department has historically been responsible for strictly handling administrative tasks that allow day-to-day operations to run smoothly. Originally conceived to pay and recruit employees, HR now plays a significant role in organizational strategy. Thanks to recent advancements in technology that have automated the time-consuming processes that they once faced, modern HR departments are now free to contribute their insight in a proactive way, allowing organizations to create workforce strategies that drive efficiency and performance. With that said, the future of HR is looking strong and prosperous.
As HR technology continues to allow the department’s role to expand and increase in significance, many experts have started to speculate what the future of HR will look like. Many agree that rather than replace employees, HR technology has complimented the roles of HR professionals, and has allowed them to put their workforce knowledge to good use. Since HR has the greatest understanding of workforce needs and challenges, their insight has contributed to impactful strategic business decisions that promote sustainable growth.
Here are some expert predictions regarding the future of HR positions in today’s modern business environment.
HR Will Deliver Predictive Data
HR already has an abundance of data regarding their organization’s employees that help executives better understand their workforce. Data such as turnover rate and average PTO taken can help executives adjust their internal policies, but experts are claiming that HR will become a predictive data hub that provides information that can significantly increase executive workforce knowledge.
According to Jean Martin, talent solutions architect at consulting firm CEB, “HR will be adept at providing the rest of the organization with data that does more than simply explain what’s already happened — it must tell its leaders who within the organization may be thinking of leaving, who’s joining and why, and why one team is experiencing performance failures while another is thriving.” As HR technology becomes more sophisticated, more intricate reports can be ran that provide more useful, qualitative workforce data, allowing executives to proactively implement strategies that strengthen their organization and prepare it for future challenges.
HR Will Work Closer With C-Suite
C-Suite executives understand the importance of a strong, efficient HR department. With that said, it’s rare to see C-Suite executives collaborate with HR on specific projects or go out of their way to include HR on key boardroom discussions. According to HR experts, however, this trend is likely to change.
Dr. Janice Presser, CEO of The Gabriel Institute, discusses how HR’s insight will be crucial for developing strategy for innovation and growth. Presser explains that, given recent technological advancements, HR has “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.” With digital tools and strategies automating most processes that consumed their roles, HR has more time to spend helping C-Suite meet organizational goals. Moving forward, C-Suite will also be able to set more strategic goals for HR that drive employee success and development.
HR Will Collaborate More with Finance
The differences between HR and Finance has been well documented over the years, with the two departments often speaking a different language. To put it broadly, HR primarily cares about the people, dealing with more qualitative data, with the objective of building a stronger workforce. Finance, on the other hand, primarily cares about the money side of an organization, dealing mostly with quantitate data, whose primary objective is to keep their organization financially stable. These two departments also often operate on different systems, making it hard for the two to communicate. However, with the inclusion of HR technology and a unified software solution, HR and Finance can finally collaborate and build a better workforce together.
The importance of a strong relationship between HR and Finance has been known for some time. Back in 2014, The HR Team released an article that discussed the significance of a strong partnership, saying, “When these two departments are able to come together, their cooperation leads to positive business outcomes. According to a global survey of CFOs and CHROs, a strong relationship between the two departments leads to improvements in employee productivity and engagement, and higher corporate earnings.” With a solid foundation for communication with Finance, HR can increase their footprint within the organization and partner with Finance professionals to push strategic, financially viable initiatives.
As HR departments become more advanced with the increased accessibility of modern technological advancements, their roles and responsibilities will change accordingly. As software continues to increase its prominence in workforces around the country, HR can be freed of administrative tasks and take part in more strategic decision making. By partnering and collaborating with C-Suite executives and the Finance department, HR can become one of the most important departments within an organization.