The Trends of Human Capital Management

What are the current trends in human capital management? We’ve touched on Artificial intelligence, Millennials, Remote working, and Regulatory compliance. What’s next? Changes in pay stub maker? What will happen in 2022? And what should HR be doing? What will the future hold for HR? These are questions we’ll explore in this article. We’ll also explore how to keep your finger on the pulse of your organization. Read on to discover some trends you should be paying attention to.

Remote working

In the past, employers resisted allowing employees to work from home, and many balked at the idea. The most common concern, they felt, was the loss of productivity. In reality, the opposite is true. Employees who work from home are more productive overall, with only one-fourth of them taking longer breaks than office workers. Office workers are unproductive for an average of 37 minutes per day, while remote employees lose an average of only three days a year.

To make remote working a successful practice, organizations must first draft an inclusive policy for all employees. They also must invest in appropriate technology. In particular, virtual work environments are vulnerable to cybercrimes. Additionally, managers must ensure their employees have adequate internet connections and access to company networks. They should also encourage their managers to conduct virtual meetings to check in with their teams. Ultimately, timely communication is vital for a productive remote working environment which is the definition of human capital management (HCM).

Artificial intelligence

AI has some benefits in human capital management, from recruiting to training. However, while some firms have already started using AI technology, most are not yet making the shift. According to Deloitte’s 2019 Global Human Capital Trends report, only 6% of respondents had best-in-class technology in their recruiting procedures. Eighty percent said their recruiting processes were merely average. That means there is plenty of room for change in human capital management.

The biggest challenge facing HR leaders is integrating AI into their in-house infrastructure. Although many benefits are quantitatively measurable, it is more difficult to quantify how AI will affect employee experience. To avoid these challenges, HR leaders should focus on building awareness of AI, defining use cases, and prioritizing projects that tackle critical challenges. 

Regulatory compliance

Regulatory compliance is one of the latest trends in human capital management. HR managers are responsible for keeping the organization running smoothly by recruiting and retaining top talent. Recruiting the right people sets the company on the path to success. Additionally, HR is a significant driver of corporate compliance, so staying updated on changing human resources laws is crucial. Below are some of the essential areas in which compliance is a trend.

Regulatory compliance includes any law related to an employee’s rights and responsibilities. HR professionals should keep abreast of all federal actions regarding employment laws. Federal laws provide the floor below which an employer cannot fall, but state and local governments have been active in recent months. If an employer is required to meet an employee’s rights above federal law, they must meet those requirements. This is where HR professionals come in.


If you aren’t already, you should start by engaging millennials in the recruitment process. This new workforce wants to feel heard, which can be done through a formal 360-degree performance review or informal lunch meetings. Millennials also seek a deeper sense of purpose and flexibility, so companies should tap into this desire. Here are some tips to get started:

The millennial generation is the largest in the labor force and will likely continue doing so for the foreseeable future. As a result, many companies are beginning to meet their expectations for a modern workplace to increase their bottom line and attract the next generation of employees. Although the economy is full, talent competition is fierce, and economists predict that hundreds of thousands of new jobs will be created in the next several decades.

HR technology

As technology continues to advance, employee expectations have changed. Companies are focusing on things that produce the most significant value, which is why HR’s role is constantly evolving and being revised. The focus will be on employee well-being and engagement. In addition, companies are beginning to consider outsourcing specific HR tasks, like payroll and records. In this way, HR can focus on human capital management while outsourcing the other aspects of its job.

Artificial intelligence is becoming more prevalent in business. It is becoming easier to automate tasks, including recruiting. Human resources professionals can save time using chatbots and artificial intelligence (AI) tools. Today’s best practices also include video interviewing and AI. Machine-learning tools help recruiters develop a complete picture of candidates, freeing up valuable time for more critical tasks. In fact, 84% of companies use artificial intelligence (AI) to improve recruitment.

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