Insights

Part 1 – HR predictions for 2021

Yes, we know the ‘HR Predictions for 2021’ ship has already sailed. But, that’s not what we are discussing here. We are here to discuss how the predictions from the end of last year have fared. This will be a two part blog, allowing for shorter reading time and greater time to reflect on the thoughts shared below.

Two quarters have passed in the year 2020. Before we get started with our prediction analysis, let us look at some of them first and later on move on to analyse their current state.

Predictions made

Predicting the future accurately might seem a big task for the uninitiated. But, with the amount of data available now, we can get pretty close. Even when we have various technological advancements, sometimes we cannot take into account all the variables.

Here are 5 predictions that were made in connection to HR for the year 2021.

1. AI is going to disrupt the job market by automating many repetitive and routine tasks.
2. Personalisation. Continuing on its trend from 2019, HR will make more personalised experiences for employees during 2021.
3. People Analytics will also continue to gain importance. In 2021, expect people analytics to move from the periphery to the core of HR strategy.
4. Ethical development of ‘personal analytics’ for bringing about improvement in workplace and driving employee improvement.
5. Employee experience and wellness will be aided by data driven insights. Expect companies to take an increased interest in the physical and mental wellness of their employees to boost workplace productivity.

Cross Examining the Predictions

As we have discussed the various ways in which AI is influencing HR Teams, we are pretty sure that AI has been pretty instrumental in disrupting the job marketing. With the development and increasing availability and affordability of chatbots, it is becoming easier to automate repetitive and routine tasks. So, the first prediction has to a great extent been realised as we move into the second half of 2021.

Coming to speak of the second prediction, personalisation has been increasingly preferred for improving employee experience. Data driven insights overcome the one size fits all approach previously employed by HR programs of the past.

Insights are helping employee on-boarding, learning and are also showing promise in organisational success by providing data to support workforce planning, strategy, retention and business performance.

So, the second prediction is more or less an extension from 2020

The prediction that stood its ground throughout 2020 and will continue to do so in the second half of 2021.

Moving on to the third prediction we looked at, people analytics will continue to gain importance. Already more than 69% of the larger organisations have embraced people analytics. They have a people analytics team that constantly works towards providing value to employees while also driving business outcomes for the better.

With increasing awareness of the business benefits of investing in People Analytics, many major players are starting to invest in the sector. Though there are some aspects that require further development like achieving excellence in people analytics, we are well on our way towards achieving success by the end of this year.

The difference in profit margins of firms that are already employing people analytics as opposed to those that haven’t is about 56%. That statistic alone might be enough to showcase its scope and possibility of implementation by the year end.

At this point of time, the personal analytics market is a small one. But, it shows great promise in the near future. The collection and analysis of personal data is under heavy scrutiny by the community, as ethical use of such data is not completely guaranteed even at this point of time.

Currently, all tools necessary for analysing personal data are available

However, there are greater strides in the field that are acceptable to the entire population. We can see the HR implications with the increasing amount of personal data that we collect from companies to give its employees an opportunity to make data driven choices and work decisions. Still, we believe it will take more time than the end of this year for personal analytics in its complete capacity.

Lastly, we are improving employee experiences across companies driven by data and otherwise. Empowering employees to lead a healthier and more balanced life has been the talk of the year in the HR sector. Many firms have welcomed newcomers with open arms. They make them feel comfortable and hire with growth in mind, both organisational and personal. The HR is accepting this trend in 2021 more willingly. We will see greater improvements with this trend going ahead.

Wrapping up…

Looking at the current trends that are developing from the year 2018, everything seems to be going more or less as expected. In the next instalment of this blog we will discuss more trends for 2021. We will also discuss how they are holding up after 2 quarters have passed this year.

Source: People Hum