Increasing your company’s performance depends on many complex factors, but it always requires excellent employee development. In 2019, companies that plan to grow know that they can’t neglect a critical element: their human capital. This is why human capital management trends are of prime importance, and may offer a path to help your company become its best version this coming year!
Performance Management Evolution
In a 2015 Deloitte survey, researchers found that more than half of the companies surveyed were not content with their performance management process. Their ineffective methods threatened their resources and wasted time, with potentially huge consequences. In some cases, their processes threatened their ability to place people appropriately, potentially leading to lower company morale and rising legal concerns.
Companies suffering from poor performance management can also suffer financially, and should immediately pursue more effective processes for performance management. In 2019, companies that want to avoid these consequences must transition from the traditional style of performance management to a more customized process which caters to a company’s unique needs.
Leading the pack are GE and ConAgra. GE’s approach, for example, assesses people’s performance in handling jobs, their will to collaborate, and their speed at work. These assessments are done through ongoing development, regular conversations, and coaching.
ConAgra also uses conversations as a tool for managers to increase engagement with their employees. They focus on two things in these conversations: finding out what they are working on currently and how they manage to complete their goals.
In all cases, performance reviews should place have more emphasis on quality. This is according to Josh Bersin, analyst in the field of HR Artificial Intelligence.
Gone are the days of judges. Welcome the “coaches” to the field.
Flexible Work Arrangements
To get better at human capital management (HCM), companies are adjusting to changes in their employees’ environments. While traditional work arrangements have always been closely tied to an 8-hour job in the office during specific hours, companies have begun to adjust: they have started to recognize the trends in mega cities (like traffic) which directly impact employee performance.
Better Software for Working
Working environments are not exclusive to the actual office space. More companies now use technology to expand their working spaces to online environments. GE made use of an app which allows people to log their work priorities, their notes from conversations, and to provide feedback.
As technology plays a more crucial role in HCM over the coming years, companies should not resist new developments, but choose instead to navigate through technological changes. With this approach, companies can become more flexible, and able to adopt better performance management processes. Companies will need to be more agile to keep up with a fast-changing world.
Innovations in Recruitment
Some organizations have goals and a company culture that require specific skills and characteristics from potential employees. But where old assessments of a potential employee would focus only on their skills and knowledge, newer approaches examine their agility: their ability to keep up with change, with new processes, with a fast-paced environment.
Modern HCM trends require that recruiters look beyond skills, expectations and perceived strengths to potential:
- How does the employee keep up with new technological trends?
- How does the employee manage shifting goals?
- Does the employee have a collaborative spirit?
With those changes, human resource departments need to come up with a recruitment process that will welcome new employees who fit the unique working environment. Testing someone’s skills is easy, but testing resilience, agility, and other “intangibles” requires research and study. This is why companies need to start thinking about investing in HCM now.
Better HCM Requires a Budget
To become better at human capital management requires an investment, and a willingness to depart from tradition and “the way we’ve always done it.” Companies should make an investment in online training and education, and include the budget in their annual budget plan. Companies that want to level up in 2019 can’t have second thoughts about improving their HCM.
Human capital management has come a long way, and techniques are constantly changing. In 1908, Frederick Winslow Taylor developed the Scientific Management principles which he used to study how every individual’s work potential affects their work productivity. By 2030, artificial intelligence will transform the way human resources are handled in companies. HCM is a moving target, and companies who want to succeed should actively navigate through the changes.
Lidia Staron is a passionate, creative writer and marketing manager at OpenCashAdvance.com. As a financial advisor and financial planner, she knows that life is full of major events and crossroads. She enjoys helping people navigate through important financial decisions while avoiding common mistakes.