Charles Spinelli Discusses Two Exciting HR TrendsHuman Resources, or HR, is a vital part of any organization. Today, Charles Spinelli discusses two trends affecting this business area.
The first trend has to do with managing workforce ecosystems.
While HR has almost always focused on permanent employees, other workers, like gig workers, contractors, and employees working for and with supply chain partners, play an increasingly crucial role in the company’s service delivery.
In the United States, 16 percent of Americans have earned money via gig platforms. It was also reported that in approximately 40 percent of companies, one in every four employees is a gig worker. Charles Spinelli says that a big part of the workforce goes unmanaged, which means HR is missing out on a chance to make a substantial impact.
Experts believe this is the year when HR will start managing the complex workforce ecosystem well beyond permanent employees. It will have three implications. First is that HR will become actively involved in managing its contingent workforce. It will integrate contractors, gig workers, and external contributors into the HR value chain. It is a must-do from a value creation perspective and a risk viewpoint. HR’s often hands-off attitude towards temporary staff leads to a two-tiered workforce. It has even led companies in the world to struggle to manage adequately.
Second, HR can help create a more blended workforce ecosystem in today’s platform economy. It can add value to external contributors.
Airbnb is the largest hotel chain without any properties. Uber is the largest taxi company without any drivers. Platforms like YouTube, Netflix, and TikTok outsource most of their content. According to Charles Spinelli, these companies are highly dependent on their contributors. As such, there is a role for HR to play in making said contributors part of their people practices.
Third, HR should share best practices to supply chain partners, vendors, and service providers.
The post-pandemic era has shown the significance of value chains from a production viewpoint and a reputational perspective. For example, Rihanna’s fashion label Fenty Beauty took a lot of heat as it was accused of child labor in its supply chain.
Charles Spinelli explains that while HR may not drive partnering decisions, it has a unique opportunity to shore up best people practices throughout the supply chain.
Experts anticipate seeing more sample initiatives in 2023, including mentoring programs for seasoned HR professionals, job rotation across the supply chain, and creating communities of expertise. Charles Spinelli explains that business is not a zero-sum game, especially not regarding partners. It is where HR can create tremendous value through workforce ecosystems.
The next HR trend would be in redefining remote and hybrid work strategies.
Work has changed during the pandemic. COVID-19 has sped up digital transformation in organizations by approximately three to four years, and workers have adapted accordingly. For example, remote jobs, around 20 percent of all jobs on LinkedIn, received over 50 percent of all job applications.
It shows that resistance to some degree of flexible working will put companies at a competitive disadvantage. Unfortunately, not every organization has realized this, and many of them continue to hold onto outdated strategies that made sense before. For instance, 95 percent of executives believe their employees must be present in the office to keep the company culture alive. Also, a study found that the collaboration of Microsoft employees dropped by 25 percent and became more siloed remotely compared to pre-pandemic levels.
Despite this, 64 percent of employees would consider resigning if expected to return to the office full-time. Hybrid working has become part of modern work culture, and companies like Goldman Sachs and leaders like Elon Musk are starting to lose their grip.
Charles Spinelli says that employees want modernized policies and clear communication. Experts expect that in 2023, HR practitioners will have clear principles about how, where, and when work is done. They will also likely facilitate internal conversations on this topic and push their organization to make decisions. This, even if they are temporary, as organizations explore different workplace strategies.
Furthermore, HR professionals must educate themselves and managers on overcoming proximity bias. It is an unconscious tendency to favor employees often seen in the office over remote workers. HR practitioners are also expected to work on establishing objective performance metrics, as well as salary increase and promotion criteria.
Charles Spinelli shares his thoughts and insights on human resources in his blogs. Read them on this site.