Technology has revolutionized the mode of accessing information and that of conducting business. All industries have gone digital and global. Such changes will have a deep impact on the workplace. Businesses need to rethink how they lead, reward, develop, engage, and hire their workforce.

The HR department can navigate this changing landscape by exploiting new technology, like using human resource management software. In 2020, an additional factor was the changes in HRM because of the Covid-19 Pandemic. More and more employees began working from home, causing a rise in issues like employee motivation and productivity. HR teams have had to focus on the optimization of costs and remote serving of their businesses.

Some of the top challenges businesses will face in 2021 are:

Recruitment of best talent

The major aim of any HR specialist is to locate the best talent in the market who will match not only the job role but also the company culture. The HR manager will have a deep understanding of the organization’s needs and ensure they are accomplished in the recruitment process. He will also be engaged in co-ordinating efforts of hiring, onboarding fresh hires, and dealing with paperwork.

Driving the organization as per the purpose

HR trends in 2021 will be largely driven by purpose. As per business leaders, the purpose is vital for success, and organizations driven by purpose are the solution for several challenges. This implies that decisions and behaviours across all levels must be integrated within a single purpose.

Dealing with young employees

Many companies have nearly 4 generations in their workforce: Millennials, Generation X, Baby Boomers, and Traditionalists. Very soon, Generation Z also will enter the workforce. The result will be a workforce with a different set of values and priorities as regards their career. Therefore, HR professionals need to be aware of emerging career values and working styles to prepare the right corporate policies, which will keep the new generation happy.

The mental health of employees

Companies and their HR departments are focusing on the mental well-being of employees, especially in the context of the Pandemic era. Much efforts are on to help co-workers to stay connected with each other, play games in remote mode, and organize coffee chats in the virtual world. Physical and mental health is becoming major concerns in the quarantined world. Companies wish to create a thriving and happy workplace. They are focusing on support for mental health and delivering a good work-life balance for employees. Such efforts will help prevent burn-out and boost employee morale and productivity.

Up-skilling hr team

There is rising concern about learning and development. The existing need for personal growth has been deepened further by the Pandemic. Companies are trying to upskill their HR teams rather than hire fresh talent. Three major abilities sought in the HR team are business acumen, data literacy, and digital integration.

Improved experience in recruitment

A personalized applicant tracking system is a key technology for successful hiring and recruitment. This ensures that initial screening weeds out unsuitable candidates. It also helps good candidates for submission of their details and information online, which boosts their accessibility. Technology through the human resource management system helps to sift through the large quantum of data to find the best match.

Use of artificial intelligence (AI)

Programs powered by AI are revolutionizing the process of hiring and recruitment. They aid in speeding up filtering and review of applicants, analysis of labour market, identifying competencies, and matching skills.

Chatbots may be used to help in the first interaction with job applicants, which helps reduce much time required for the process of hiring. AI will also aid in speeding up training and development of employees via Augmented Reality (AR) or Virtual Reality (VR). In fact, some tools can aid HR leaders to discover possible reasons for employee turnover and prevent employee departures.

AI is also used for tasks like job postings, payroll, and applicant traffic. Additionally, it enables faster decision-making using HR Analytics. In fact, the key to the survival of the business may be the capacity to predict the impact on the business and make necessary changes.

These are some of the top trends in HR management systems, expected in 2021.