Organisations must look beyond financial returns and pay heed to societal demands to address social and environmental responsibility
In an era defined by change, dynamism and competition; new paradigms of business are being constantly created. The status quo is challenged by forces of technological breakthroughs, economic growth, market evolution, societal changes, shifts in consumer tastes and political events. To compete as well as to sustain, businesses must manage change effectively. Therefore, the HR function needs to transform itself from being a conservative, to play the role of a facilitator.
HR trends in emerging economies
There is not much difference in data points over the last decade and a half; however, the challenges facing the HR fraternity show different patterns in different geographies. The emerging economies present an interesting case. The general perception that the HR trends in China and India follow the same pattern does not hold true. Large Indian companies are more strategic in terms of their HR policies focusing on talent and human capital, while China’s HR policies are less strategic and more bureaucratic and traditional. With an increasing number of Indian companies competing and operating in multiple domains, there exists a lot of similarity in handling HR issues; and the HR practices in these companies are comparable to that of companies in the US. As in the developed economies like the US and the UK, in the long run, HR in emerging economies will play a more strategic and business partner role.
On diversity & metrics
Workplaces have been at the forefront when it comes to bringing in diversity in workforce. Despite embracing diversity, there is an under-representation of women in leadership positions. Given the diversity of the workforce, individualization is critical as it helps in attraction as well as retention. If organizations are to perform well, they have to use people metrics to drive the growth agenda. HR practitioners must be fully equipped to handle this challenge and therefore, benchmarking knowledge, skills and competencies, required by the HR professionals is extremely critical.
The organizational analysis and metrics can help draw key insights into what organizations can do to achieve efficiency in terms of performance from the available talent pool. In a financially fluid environment, the key investment decision is whether to buy talent or invest in talent development.
Organizations must look beyond financial returns and pay heed to societal demands to address social and environmental responsibility. HR, which has been rendered handicapped due to transactional and administrative roles, needs to mature and provide expertise in OD, performance model, contribute to strategic thinking and initiate a new form of strategic/organizational effectiveness. Focus on corporate governance and ethics will play a pioneering role in driving organizational citizenship.
The dominant trends for HR professionals would be responding to changes; and managing challenges of human capital and talent. Organizations which are agile and able to respond to change will be the winners.