The field of Human Resources Management (HRM) is an ever-evolving industry. As the world of business and technology changes, so does the role of HRM professionals. To stay ahead of the curve, an MBA in Human Resources Management can provide them with a comprehensive overview of current trends and best practices to ensure success in their chosen profession.
The demand for highly trained HR professionals has grown significantly over the years, making it increasingly important for individuals seeking to enter or advance in this field to have a professional degree, such as an MBA in Human Resources Management.
To understand the current trends in human resource management better, dig further into the article.
Scope of Human Resource Management?
Human Resource Management (HRM) is a vast and complex field that includes a wide range of activities, personnel, and responsibilities. At its core, HRM is responsible for managing the workforce of an organization, and ensuring that employees are hired, trained, and retained in a manner that best meets the needs of the organization.
Depending on the size and needs of the organization, these roles may be handled by different personnel. For example, in a small business, HR responsibilities may be handled by a single HR manager or HR generalist.
In a larger organization, HR responsibilities are often divided among a Chief Human Resource Officer (CHRO), HR Director, and a team of HR professionals, each with specific areas of expertise’s.
7 Major Human Resource Management Trends of 2023
In 2023, human resource management will be undergoing major changes as employers across industries prepare for a future where technology and digital transformation are becoming more prevalent. Top trends in human resource management are discussed further.
1. Focus on Overall Wellbeing
The American Psychological Association (APA) has revealed that almost three-fifths of staff members have experienced detrimental effects of job-related stress due to the pandemic. 87% of American citizens feel anxious due to inflation, and seven out of ten workers are concerned that their wages are not up to date with the shifting value of money.
In 2023, organizations are expected to become more proactive in tackling the issue of employee burnout. This is both an ethical and practical imperative, as the consequences of burnout can be damaging for the organization itself.
2. Redesigning Remote and Hybrid Modes of Work
The COVID-19 pandemic has caused a rapid acceleration in digital transformation within organizations, causing employees to adjust accordingly.
Statistics show that remote jobs, which make up around 20% of all listings, have actually received more than 50% of job applications. This emphasizes that a lack of flexibility in the workplace will make businesses less competitive.
Unfortunately, many companies have not realized this and are still holding onto outdated procedures that used to be useful. With the new trends in human resource management, it's high time that more organizations focus on developing better hybrid working environments.
The Human Resources department will become more of a combination of in-office and remote work. It is up to HR to help ensure positive results come from remote working, and we anticipate seeing more of this during the year 2023.
3. Organizing Workforce Ecosystems
Traditionally, Human Resources has concentrated on full-time staff; however, other types of workers, such as freelancers, gig workers and supply chain partner employees, are becoming increasingly significant in the company's delivery of services.
First, Human Resources must become actively engaged in managing their non-permanent workforce. They will combine independent contractors, gig workers, and external contributors into the HR process. This is necessary for both the development of value and risk management.
Secondly, in the current platform-based economy, Human Resources can help create a more integrated workplace by adding value to external contributors. These businesses rely heavily on their contributors, and there is an opportunity for HR to make them part of their personnel practices.
Lastly, Human Resources should exchange best practices with supply chain partners, vendors, and service providers. The pandemic has demonstrated the importance of value chains from a production and reputation standpoint.
4. Evolution of Chief Human Resources Officer Roles
Today, the CHRO is donning a variety of hats as a result of current events such as the COVID-19 pandemic, the start of the war in Ukraine, and the rise in inflation. This has put HR at the forefront of the organization since the beginning of the year.
During board meetings, the CHRO is in charge of conversations related to policies, business continuity, and the safety and productivity of employees.
In addition, they are responsible for launching environmental, social & governance (ESG) goals as they become increasingly ambitious, and investors seek out businesses with this focus.
5. Inclusion All Through Employee Life Cycle
The major human resource management trend of 2023 is the inclusion of employees across the entire employee life cycle. This means that companies are focusing on creating an inclusive and equitable workplace culture that spans the entire scope of a person's journey with the organization.
Companies are looking at their recruitment and onboarding processes, their policies and procedures, and their performance management and development practices to ensure that all employees are being treated fairly and are given the same opportunities for success.
Additionally, employers recognise the importance of understanding the unique needs of each individual employee and providing them with the resources and support to succeed. As a result, organizations are seeing higher levels of job satisfaction and productivity, as well as increased loyalty and retention among their employees.
6. Opening New Doors of Metaverse
The future of Human Resource Management is predicted to be incredibly exciting with the advent of the metaverse in 2023. These global trends in human resource management are expected to revolutionize the way organizations connect with their employees and manage their talent.
In the metaverse, companies will be able to do much more than simply view resumes and conduct interviews. They will be able to create entire virtual worlds, allowing employees to interact with each other, discuss ideas, and collaborate on projects.
HRM teams will also be able to develop training programs, career pathways, and even virtual learning experiences. All of this will be possible without the need for physical office space or expensive hardware investments.
By 2023, we expect that the majority of HRM activities will take place in the metaverse, making it a major trend in the field.
7. Developing Purpose-Driven Organization
The major new trends in human resource management of 2023 include the development of purpose-driven organizations. In today's corporate world, organizations are no longer driven just by profit but by a purpose that goes beyond the bottom line.
Employees need to connect to the company's mission and feel that their work is meaningful and important.
Companies are investing in creating a purposeful culture and making sure that their employees are aware of the company's mission. This includes developing a workplace culture that promotes transparency, inclusivity, and collaboration.
Companies are also striving to create a workplace where employees can develop their skills and work in an environment that is conducive to their development.
As such, HR departments are focusing on developing initiatives to engage employees better and develop their skills. By 2023, HR departments will be focusing on creating purpose-driven organizations and inspiring employees to be part of something bigger than their job.
Summary
The future trends in human resource management are bright and full of opportunity. By keeping up with these trends, MBA graduates can take advantage of the ever-evolving field to stay competitive and better their careers.
To make sure that job seekers are well prepared for the future, universities should focus on providing top-notch education and training so that individuals have the necessary skills to succeed in this rapidly changing world.
Upscale Your Career with an MBA in Human Resource Management from A Trusted Institute
Are you interested in pursuing a postgraduate degree in human resource management? If yes, then GBSRC, Pune, is the perfect place for you. It is an A++ grade university by NAAC with a CGPA of 3.64 on a four-point scale.
At GBSRC, Pune, you can get an MBA in Human Resource Management and equip yourself with the latest knowledge and skills you need to succeed in the field.
You will gain in-depth knowledge of all aspects of human resource management, including recruitment and selection, training and development, compensation, labor relations, and performance management.
You will also gain the necessary skills to effectively manage the human resource functions in any organization.