It goes without saying that we live in an increasingly digital world where daily operations are dictated by technology. In fact, a recent survey of CEOs asked whether they thought their company was a ‘technology company’ and 67 percent said yes.
As a result, HR departments must respond to ongoing trends like the cloud, mobile computing, and artificial intelligence with their own digital technologies for a more personalized employee experience.
But this metamorphosis from the traditional to the twenty-first century is likely to occur in other areas too. While some businesses might find it difficult to uproot long-standing beliefs and processes, the overwhelming advantages of recent HR developments are bound to improve overall performance and efficiency.
So, what exactly are the hottest HR trends for 2017? Here are three predictions.
Greater psychometric testing
Of all the processes your average HR department has to deal with, recruitment is arguably one of the most difficult and drawn-out. Along with the pressure of finding the right candidate, you have also got to consider the admin, expense, onboarding, and training too.
This is why more and more businesses are introducing psychometric testing at an early stage of recruitment according to leading assessment provider Skillsarena. Employers can build a character DNA of each candidate in order to see how personality drives aspects of behavior.
The resulting insights can then be used in a number of different scenarios not limited to recruitment, such as matching employee and customer personalities to enhance relationships.
Fewer annual performance reviews
Over the past few years, numerous big name businesses such as Deloitte, Adobe, and GE have decided to get rid of annual performance reviews. This has made several other notable companies take note and do the same.
But for this move to be successful, it is imperative that you have a strong alternative lined up. After all, not every organization that has said goodbye to annual performance reviews have seen the purported results, with some even witnessing a slump in employee performance and engagement.
The answer lies in data collection and change management, as performance reviews are hugely reliant on actionable information. Otherwise, any transition to a more forward-thinking system won’t work.
More changes to company culture
Despite the fact having a strong and stipulated company culture is important, companies like Volkswagen, Toshiba, and ANZ Bank have been involved in ugly scandals recently on account of toxic working environments and impossibly high standards.
A study by Columbia and Duke University even found that an emphasis on figures often encourages unethical behavior. It also revealed that effective cultures are less likely to be associated with ‘short-termism,’ which can force employees to cut corners.
Consequently, 2017 could be the year in which many businesses make a change to their company culture. But for this to be truly effective, it will require the input of the HR teams that have conversations with employees at every level of the business to understand what is required.