Organizational strategy around human resources and human capital doesn’t occur in isolation. Business leaders’ decisions are affected by widespread changes and trends in the economy, the culture, technology, society, and more. Here is a rundown of some of the major trends that are having an impact on current and future strategies for human capital management — something to think about as you consider a master’s in human resources and management degree.
- Changing Demographics
The evolving makeup of our society requires human capital professionals to consider its effect on businesses. The American population is aging and living longer, resulting in a greater number of older people in the workforce, as well as individuals from different generations working together. Increasing diversity requires employers to be aware of cultural differences in everything from communication to working styles.
- More Competition for Talent
As the global economy improves, companies are having a harder time hiring top talent due to increased competition in the job marketplace. As workers have more options, they are increasingly considering an organization’s brand and identity, work-life balance, benefits, social responsibility, and other factors as they look for a job. Organizations will need to focus on those elements more if they want to draw in the highest performing candidates.
- Data and Analytics
Business executives are already using critical insights and metrics provided by data, and there is an increasing push to use it as a tool for evidence-based practice in human capital management. As organizations take a more strategic view of human resources management, in-depth data analysis can help measure and illustrate the return on investment in this area, and can also provide insights into organizational design, development, and performance.
- Leadership Development and Learning Opportunities
Organizations are concerned about developing the next generation of leaders, resulting in a demand for formal and research-based leadership programs. In addition, companies are using learning programs to drive employee engagement, but these programs can also help nurture leadership abilities and professional development.
- Compliance and Regulation
Laws regarding employment, information privacy, equal opportunity, labor practices, and more are constantly changing. Keeping up with them and making sure organizations are in compliance with regulations can be expensive and time-consuming. Many companies are evaluating and implementing technology solutions to minimize the costs and resources devoted to this task, freeing up HR professionals to focus on other aspects of their work.
- Controlling and Containing Costs
Most organizations have to be concerned about expenses and costs. Effective human capital management can help by instituting strategic plans that help companies hire and retain key employees, lessening costs related to recruitment and training. Thoughtful planning can also help ensure that organizations have the workforce they need to meet not only current but also future business challenges — minimizing the chance that they will have to make expensive changes in reaction to unexpected developments.
The MS in Strategic Human Resource Management program from Saint Joseph’s University provides you with the skills and knowledge to effectively and strategically plan for workforce requirements. To learn more about this master’s in human resources management program, request more information below or call (610) 660-3400 to speak with a Program Manager right away.
“Future Insights,” available at www.shrm.org
“10 Key Trends from Deloitte’s Global Human Capital Trends Report (2016),” available at www.decision-wise.com
“Five Trends That Will Redefine Human Capital Management,” available at www.adp.com