2024 has been a wait-and-watch year for HR with a lot of ongoing developments in form of maturing technologies like AI, emerging workplace models like Hybrid workplace, deepening concern for environment through ESG initiatives and of course widening geo-political tensions.
As some of these developments mature, 2025 could be a challenging and relatively decisive year for Human Resource professionals with a profound impact on organization’s talent philosophy and workplace architecture.
I think, for HR professionals, it might turn out to be a year of interesting paradoxes, fine balances, and some trade-offs. Let us look at some of these and analyze the changing dynamics:
Balancing High Touch With High Tech
With virtual communication becoming the new reality, managing deeper connect with employees at an emotional level will be a challenge to watch out for. While WhatsApp can be a good & easier way to share and exchange wishes, it cannot replace the impact of personalized wishes in form of handshakes & hugs.
Communication over instant messengers or video conferencing our Zoom & Teams may be good for transactional communications but may not be very effective for deeper conversations where body language and emotional decoding play a role.
HR will have to build and sustain a culture which imbibes new technologies but at the same time preserves the essence of a cohesive and caring culture based on strong relationships and personal touch.
In-Office Working And Remote Working
The question most companies have been grappling in 2024 is to arrive at an optimum flexi working model. Â To what extent Remote working is good from a productivity and employee engagement perspective without dilution of cultural collaboration dynamics & camaraderie at workplace is something organizations are still experimenting.
Another question to be answered would be whether flexi working is a benefit or an entitlement from an employee perspective. The fact that employees are threatening to resign on mandating work from office shows how locus of control is moving towards employees.
Availability of alternate employment options & choices which gives more flexibility and a bigger say to employees. HR will have to help organizations arrive at a clear workplace model which balances organization’s interests and expectations with those of employees.
Balancing Expectations Of Multiple Generations With Unique Expectations Of Gen Z
On one end of the generation spectrum, Gen X employees are approaching retirement and on the other side, Gen Z employees are entering the workforce. There are mixed views about Gen Z, one school of thought days that they are too demanding, many a times unreasonable and not very reliable, the other school of thought says they are creative, highly digital and bring a start-up mindset at work.
HR will have to play a critical role in creating a healthy multi generation culture where different generation employees can collaborate and work together, a culture which balances the unique needs of different generations.
Choosing Efficiency Of AI Solutions Over Reliability
AI Solutions will move from concepts & prototypes to real world applications. Rubber will hit the road when we start seeing manifestation of AI applications in real world scenarios. The biggest challenge for HR professionals will be to decide how much to adopt and experiment vis- a-vis how much to copy tried solutions from peer companies.
The digital transformation is going to impact HR processes and talent architecture and it will be for HR professionals to decide the speed at which they want to catch up with the technology bandwagon.
Task Efficiency Vs. Cognitive Stimulation – Impact Of Generative AI
This is going to be an interesting phenomenon to watch out for. As Generative AI tools like Chat GPT and Copilot churn content and make life easy, it needs to be seen if that is impacting the intellectual stimulation and creative bout that employees seek at work.
HR professionals will have to find ways to keep the thinking mode for employees on as smart technologies start taking share of mental workload for employees.
Hiring Full Time Employees Vs. Engaging Freelancers & Platform-Based Service Providers
New employment models are emerging, and we are seeing increasing composition of gig workers and platform-based service providers who associate with organizations on need basis and provide services to multiple companies at the same time. Â
This provides flexibility and ability to scale-up quickly to organizations. HR will have to make choices in terms of what type of worker will suit depending on type of work assignment and context. Another challenge will be to manage and engage different types of employees working for the same ecosystem.
Optimal Working Weekdays With Some Companies Starting To Offer 4 Days A Week.
With wellbeing getting increased attention, the focus of organizations is to finds ways to improve work-life balance. One of the dimensions being debated is the time duration at work whether in terms of no. of hours or no. of days in a week.
HR will have to address the question of optimal no. of workdays with growing trend on shorter workweek.
Balancing Employee Career Growth Aspirations With Flattening Hierarchies And Increasing Span Of Controls. Redefining Role Of Managers.
As organizations de-layer and become flatter taking the empowerment to levels below, managing career ladders will become a challenge. HR will have to find ways and means which give a meaningful sense of career progression to employees.
The role of manager will also get challenged. Infact some organizations have started repurposing the middle layer on the pretext of becoming more agile. HR will have to help managers redefine their roles to help them add value in flatter hierarchies.
Enhancing Sustainability While Meeting Short Term Business Delivery Aspirations
Extreme weather conditions, Global warming and rising pollution levels have been a wakeup call for corporates. Companies are looking at ways to reduce carbon footprint through measures like recycling and refurbishing.Â
New age generations who have been observing this closely are preferring green companies and products which are environment friendly. For HR professionals, the opportunity is to create ESG as a value proposition for attracting and retaining talent while helping organization manage business growth.
The challenge will remain to create a culture of innovative sustainable solutions without losing any ground on business outcomes.
Conclusion
All these factors will make HR role more complex and multi-faceted. Developments in external world will drive internal changes within the organization and redefine the equation between employer and employee.
HR professionals will need to have a strong outside-in orientation with a close attention on industry trends to keep pace with these changes.
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