HRM (Human resource management) is the process of recruiting, training, and managing an organization’s employees and it's a vital function of every rapidly growing business. As an HRM software provider, we believe that an innovative, high-tech, and data-driven future is ahead. But what does all that mean for people? It is "human" resources after all. Trends in human resource management seem to be moving in a people-first direction.

From utilizing automation, technology, and artificial intelligence (AI) to addressing global talent shortages and providing modernized employee benefit programs, the HRM platforms of the future are creating simpler processes for HR professionals, better experiences for candidates, and clearer paths for employees. All of these point to a human-centered approach to HRM, one in which technology serves as a tool to make the employee experience better, more connected, and more fulfilling.

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However, this isn't static. Global trends in human resource management are constantly shifting to meet the needs of a rapidly developing world, so it's difficult to make accurate predictions. Recent developments have shown us that interview intelligence tools, seamless platform integrations, and beautifully designed intuitive dashboards will be the future. Technology trends such as artificial intelligence (AI), machine learning, cloud computing, workforce analytics, and mobile applications are transforming HR processes, leading to increased efficiency, improved employee experience, and greater cost savings.

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As organizations embrace the new digital workplace and people around the globe get more connected, we're discovering more and more how technology can help drive better results in human resource management. This has had a huge impact on the way we approach HR (and the technology developing around it) and has seen a shift from traditional processes to innovative tools and strategies.

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Pillar, for example, is an interview intelligence platform that integrates with your digital assistant, candidate sourcing, ATS, assessment, onboarding, and scheduling tools to create seamless integration across platforms and allows for the automation of many daily tasks. This saves HR teams, hiring managers, and recruiters time and creates a better candidate experience.

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BambooHR is an ATS platform that helps organizations make more data-driven decisions by providing them with insights into their recruiting efforts, while also helping to create a consistent and transparent hiring process for candidates. With Bamboo's automated workflows, companies can quickly find the right candidates for their positions.

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These technologies are just scratching the surface of what’s possible in HRM, and stacking them, creates a multiplication effect and are just two of the more than 550 on the market today. In 2023 & 2024 due to economic factors, we'll probably see many of these platforms get acquired or merged into other HR Tech companies that offer value-added services. This will create even more integrative experiences and incredible industry partnerships.

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Future Trends In Human Resource Management

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Human resources as a department have only been around for 100 years or so. Founder of Strategic Communications, LLC and Visier contribution author, Linda Pophal wrote a great article on the history of HR, "The 100-Year History of the Human Resources Department," in which she makes the astute observation that HR departments are often the first department called upon in a crisis but the last to receive credit.

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Linda frames HR departments as strategic business partners who are moving beyond the “touchy-feely” elements of the workplace and becoming a more integral part of an organization's success. Looking ahead, this means that HR departments will continue to evolve as technology advances, and as humans and the workplace evolve.

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Here are some trends affecting human resource management:

• Automation - Automation is essential for streamlining processes, improving accuracy, saving time, and reducing costs. It also puts the human element back in HR because it takes many of the tasks that would be begrudgingly done by people and automates them.
• Data Analytics - HR departments can use data analytics to track employee performance, reveal patterns in productivity or identify areas of improvement. Data analytics can also play a role in recruiting efforts, helping companies make better hiring decisions based on hard numbers rather than guesswork.
• Diversity and Inclusion - Diversity and inclusion initiatives are becoming increasingly important in the workplace. HR departments have a key role to play in helping organizations recruit, retain, and promote diverse talent and create an inclusive work culture.
• Workforce Planning - Strategic workforce planning allows organizations to anticipate how their teams will change over time and adjust accordingly. This includes analyzing current staff, anticipating future needs
• Ai (artificial intelligence) - Artificial intelligence is becoming increasingly popular in HR departments. AI technologies can be used to scan resumes and identify the best candidates, automate onboarding processes, monitor employee engagement levels, and even suggest training courses or career paths for employees. Ai presents not only one of the largest technological trends, but also one of the biggest challenges in human resources management, as it will displace workers and have other effects that we can't yet calculate.

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In conclusion, future trends in human resource management will continue to evolve as people do. We believe the future will be focused on employee engagement, workplace flexibility, and data-driven decision-making. The adoption, integration, and streamlining of these advancements will change the face of work as we know it.

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HR Trends 2023

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One of the biggest HR challenges in 2023 will be the economy. Financial experts estimate that a global recession will begin mid to late 2023 or early 2024. With many companies still recovering from the COVID-19 pandemic as well as the economic recession that followed and the supply chain shortages the pandemic created, HR departments may be in for a "bumpy ride."

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Add in the economic conditions with talent lost from The Great Resignation, Quiet Qutting, and global workforce shortages, and the HR department may have an uphill battle in 2023.

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The "Fed" (United States Federal Reserve) has a stated goal of decreasing inflation to 2- 3% which will no doubt push unemployment to 4.5- 5%. This shift in monetary policy could lead to a tightening of the labor market, possibly increasing wages and creating better job opportunities across the job market as a whole. As such, HR departments may be called upon to evaluate their workforce needs, ensure they are in compliance with any changes to labor laws, and identify new sources for talent acquisition.

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While this section may seem like "doom and gloom," the challenges HR departments faced in 2020 due to the COVID-19 pandemic have equipped them to handle what's ahead. HR trends in 2023 should be far smoother and easier to navigate.

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The biggest initiative we see developing right now is around employee retention. The cost-to-hire employees have gone up dramatically due to inflation and the 3 trends mentioned above. HR technology trends in 2023 show us that innovation is going to make hiring cheaper and data will dramatically lower employee turnover. One example of this is Interview Intelligence software powered by Ai. This type of tool can see the micro-expressions, tonal changes, and other inflections that human eyes and ears miss - thus creating better insights for hiring managers and recruiting teams.

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Overall, HR teams in 2023 may need to be more strategic and creative in how they approach their workforce needs. From evaluating compensation plans to creating a positive company onboarding process and culture, HR departments will be called upon to ensure that the organization is prepared for any changes in the job market.

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HR Trends

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Despite the information shared in the previous section, HR trends are still moving in a very positive direction. The traditional HR department used to be a mechanism for hiring and handling employee complaints. Now, HR teams have become an integral part of the business, understanding goals, anticipating needs, and helping with strategic initiatives.

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Tech-driven solutions are driving the future of work trends. As more employees around the world go online and have the ability to work remotely, the global workforce has become a multi-cultural, multi-lingual, inclusive, and exciting place.

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Trends affecting human resource management in 2023 include:

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• Increased focus on employee engagement and retention.

• More flexible work arrangements that support remote working (especially for individuals with disabilities).

• Greater use of analytics to measure HR performance and wellness.

• A shift towards data-driven decision-making.

• Investment in AI and automation technologies to streamline processes and shift much of the workload to technology.

• Integration of people-centric tools for employee recognition and career development.

• Increased investment in corporate social responsibility with a focus on sustainability, diversity, and overall well-being.

• And, a huge emphasis on mental health initiatives for employees.

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By adapting these strategies, HR departments can prepare their organizations for the future of work and ensure that employee engagement, developing relationships between employees, performance management, and organizational health are a priority.

If you're currently assessing your hiring process and would like a guide to help you make better hires, schedule a demo with someone from our team. Pillar created a video interview platform that's powered by Ai and for companies focused on their DEI impact. Over the last 12 months, we've helped our customers lower employee turnover by 50%, and we're confident that we can help you do the same.