In early 2017, one third of global employers reported that their workforce turnover increased. And that, in addition, a high percentage of organizations admitted they were having problems keeping key groups of staff – those with critical skills, high potential and the top performers. Furthermore, an even greater number of employers are having issues recruiting these types of employees.
These alarming statistics highlight the business challenges the war for talent creates. But, what is at stake are business productivity, the capacity to grow, developing and engaging employees, and effectively managing employees’ performance.
Small and large companies are revamping, restructuring or considering a redesign of their talent acquisition function. In addition, change – which is always at work – can be seen in emerging trends that are likely to test the mettle of even the best talent management programs.
Meanwhile, human resource leaders continue to pivot to accommodate these top five trends, which are impacting their organization’s HCM strategy:
Today’s workforce is increasingly global. Recent studies report that 40% of employees work outside of their organization’s home country. From compensation planning to performance reviews and learning tools, a widespread workforce demands the efficiency of standardized global HCM processes.
Pew Research Center® reports that Millennials comprised the largest share of the American workforce in 2015. This burgeoning segment of the workforce demands leading-edge tools and resources, which are mobile-enabled. Frost & Sullivan® research supports this trend and found that more than 70% of North American businesses deployed assorted mobile worker software to increase worker productivity, expedite the overall sales process and reduce paperwork. Additionally, social media tools continued to expand. With this new environment, HCM mobile tools, social integrations and clear communication of social media policies are non-negotiable.
Recent research also reflects that global employers currently manage an average of 33 payroll systems and 32 HR systems which is a 40 percent increase from 2014. This increased burden on the HR team thereby drives new HCM solutions that integrate systems and functions that help reduce errors, avoid duplicated efforts, minimize manual labor and allow HR to handle more strategic functions.
Compliance requirements environment is expanding. Employment laws, labor practices, taxation, data privacy and equal opportunity regulations – are costly, time-consuming and increasingly a moving target, as deadlines on employment tax regulations continue to shrink. And, employers are unprepared to document and report data with sufficient accuracy to avoid or minimize the penalties.
Increased Cost Containment
When businesses adopt a global view of what can impact their bottom line, human capital planning is appealing. A 2014 study revealed that North American firms that have instituted HCM reduce their total cost of ownership – the total amount spent per employee on all HR-related services – by an average of 26%.
Managing and retaining top talent demands a solid talent management program, whether the marketplace is tightening or expanding. A business that knows the capabilities of its employees and customers should be prepared for the challenges that may arrive on the wings of shifting HCM trends.
Businesses with an eye on the future see change. Hiring, managing and retaining top talent demands a talent management program that will serve a business well, whether the marketplace is tightening or expanding.
TelePayroll Human Capital Management (HCM) is an end-to-end, single source solution that provides the tools needed to effectively manage an employee life cycle. From applicant tracking and onboarding to performance reviews and leave of management, all employee data is securely stored in one place and easily accessible in the cloud.
From electronic documents, automated workflows, single-source, full-featured HRIS solutions to Full payroll and HR compliance – Give your employees the tools and information they need to outperform the competition and take your business to the next level.
TelePayroll HCM provides a proven framework to keep your workforce engaged and growing. It’s time to transform your company with TelePayroll HCM.
Study Resources: Pew Research Center® & Frost & Sullivan®