Business culture changes with the times, like so much of the world. One aspect that has dramatically shifted has been how people are viewed and treated within organisations. So often, the idea has been that employees are little more than cogs in the giant machine of production, resulting in a profitable output the benefits those at the top. While some critics of capitalism would claim little has changed, there are at least laws and social norms in place that were not there before. Within this has been a growing engagement with HR (human resource) management, allowing for greater insight into the nature of work and employment. This has led to better work conditions and understanding of what employment means. It’s therefore worth considering what the future of HR could mean and how that could influence business.
What is the point of HR?
There are many aspects required for a business to run. It’s hard to balance the many plates spinning that result in production and ideally profits. This allows employers to pay employees, so that people can continue to pay their bills, pay for education and so on. But this itself still requires management and this is where HR comes in.
As The Balance notes:
“Human Resource Management (HRM) is the function within an organization that focuses on the recruitment of, management of, and providing direction for the people who work in an organization. As you can imagine, all of the processes and programs that are touched by people are part of the HR kingdom.”
A lot of people, especially in smaller businesses think they can get rid of HR departments or managers. After all, they think, if it’s just a matter of hiring and firing, anyone can do it. But that’s not true. As Business 2 Community points out: “There’s a lot more to human resources than hiring and firing. There’s payroll, benefits, performance reviews and more. And you have to make sure you’re doing all of that in compliance with state and federal laws.”
To that end, businesses, regardless of size, would do well to consider HR managers – or, at the very least, send those in positions of power to HR management courses to help improve their knowledge and educate them about what it means to work in such a space. Businesses benefit from proper management – this is simply a statement of fact. Why wouldn’t you want that area, involving the hiring and management of people’s employment done professionally and well, too? Further, if you can alleviate pressure from
The future of HR
Cultural and technological progress will change how the workplace operates in future. To that end, it’s worth considering just how HR itself will change. It might seem strange to think that societal factors will influence how you manage employees, but once you see what does and continues to influence – for example – who does and doesn’t get hired, you will see how HR practice could change.
For example, what kind of culture creates a toxic work environment? Researchers at prestigious institutions have long wanted to know the answer to this question. Fast Company summarises one finding:
“A string of ugly scandals in recent years has hit companies like Zenefits, Wells Fargo, ANZ Bank, Mitsubishi, Volkswagen, Toshiba, and others. What they have in common is that all have been attributed, in one way or another, to a toxic work culture where unethical business practices were encouraged. In most cases, impossibly high standards set by executives and upper management led employees to cut corners (or worse) to reach them.”
In terms of what this means for the future, many HR leaders, executives and managers are talking openly about “culture” in the workplace – looking at what is expected from a top down perspective. As Fast Company put it: “businesses that care about [creating a non-toxic work environment] may look to their HR teams to find ways to have those conversations with all of their employees more meaningfully and more often.” This is due to how the entire company must work to create a better environment. While it is true that the power lies at the top, that still means you can participate even if you are merely an employee. But you need guidance and openness from the an HR department to allow this to happen in the first place.
Another trend will come from analysis. After all, in order to make the best decisions, you need to have the best data. As Forbes notes: “Not only is there a lot of employee data that is becoming available but HR teams also need to understand what to do with that data and how to make sense of it. This requires a deep understanding of analytics and data science. The smart HR teams around the world are staffing up with plenty data, science and analytics professionals to help make sense understand their people better.”
This data is what ties in to the research showing that toxic work environments are actually less productive. Using proper methodology and measurements, you can calculate what and when particular policies were put in place and then the results of that implementation. With the wide variety of ways to capture data about a company these days, HR will be incorporating this data into suggestions and policy it can recommend be implemented throughout a company.