Challenges and Trends in Human Resource Management: A Report

This report provides an in-depth analysis of the challenges and future trends in Human Resource Management (HRM). It begins by outlining the major challenges currently faced by HRM professionals, including the rise of the independent workforce, the need for employee engagement and retention, and the complexities of managing Generation Y. The report then delves into future trends, such as the increasing dominance of technology, particularly mobile platforms, in recruitment; the importance of competitive talent analysis; and the growing trend of early recruitment starting in college. The report emphasizes the need for HR managers to adapt to these changes and to be flexible in order to remain relevant. The report utilizes surveys and studies from organizations like Deloitte to support its findings, offering a comprehensive overview of the evolving HRM landscape.

Challenges and Trends in Human Resource Management 1
Challenges and Future Trends of Human Resource Management
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Executive Summary
The report aims at achieving two goals. The first goal is to review the key challenges
facing the human resource management today. The second goal is to identify future trends in
human resource management. The findings from the report are helpful to any human resource
manager and any entrepreneur aspiring to improve performance of the business

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Table of Contents
Table of Contents........................................................................................................................................3
Introduction.................................................................................................................................................4
Discussion...................................................................................................................................................4
Major challenges.....................................................................................................................................4
Future trends............................................................................................................................................7
Conclusion...................................................................................................................................................9
List of References......................................................................................................................................10

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Introduction
Every day human resource managers are met with new challenges. Now not only search
and attraction, but also adaptation, employee training, management of their development, loyalty,
efficiency, and retention of specialists - all of these are key areas of human resources
management. Consequently, one of the topical issues that deserves a lot of attention is the study
of promising areas that influence the personnel management of organizations and contribute to
the formation of a new innovation methodology. To achieve this, it is important to determine
different emerging challenges and trends in the human resource management. The current paper
aims at revealing key challenges and major trends related to human resource management.
Discussion
Major challenges
Independent workforce is one of the challenges facing human resource management. As
revealed by Global Human Capital Trends survey, the number of self-employed workers
continues to grow. In France, it has increased by 85% over the last ten years. In the United
States, one in three workers is self-employed and the figures are expected to increase by 40% by
2020, according to experts. In Quebec, they represented about 13% of Quebeckers in
employment in 2015 according to the Canadian Labor Force Survey, adapted by the Quebec
Institute of Statistics. But based on what is happening around the world, this proportion of self-
employed people could grow over the years. Especially since this trend responds to a need for
mobility, flexibility and the organization of working time, especially on Generation Y (Deloitte
2017).
Another challenge is that retention goes beyond and engaging employees is necessary.
Retention and engagement is the second most important challenge for 79% of respondents.

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Today, traditional engagement and retention practices need to be replaced with practices that
inspire and attract staff to engage Generation Y.
It is also important to note that human resource is currently the most valuable resource
and it is upon the human resource managers to attract and maintain them. The key points in
developing an HR strategy are the procedures for attracting and managing talents (talent
acquisition and talent management). At the same time, in attracting talents, the main role is
played by the company's reputation as strategically oriented when working with personnel,
formed through HR branding.
There is also a challenge related to the managing generation Y. Now more and more
interaction with the generation Y, characterized by deep involvement in digital technologies,
including network communications. This generation represents active public personalities.
Modern and future companies cannot do without them. In order to cooperate with them, it is
necessary to know not only how to build an HR strategy, but also how to change it in accordance
with the new plans of the company. Generational peculiarities influence the change in the HR-
environment, on the preparation of a flexible HR-strategy that is changing in order to maintain
interest in the brand of the employer.
A promising HR-direction is working with students, creating personnel reserves. This
area has become especially popular in the IT field, and the search for and training of young
specialists is carried out long before graduation from a higher educational institution in order to
prepare a candidate for development within the company at the time of graduation.
In HR planning, it is important to pay attention to general economic trends. A
prerequisite for efficiency is taking into account the crisis strategies employed by the

Challenges and Trends in Human Resource Management 6
organization: from the rapid movement towards staff reduction to staff expansion and the growth
of new offices.
There is also a need for the need for a comprehensive audit of all systems and personnel
management subsystems. This determines the priorities in the HR-area to achieve key business
goals. The analysis, he notes, should be carried out among all the functionality of the HR service:
search and admission to the company, adaptation, bench marketing, internal PR departments,
salary analysis, maintaining corporate culture. In general, information should be accumulated in
the main directions: the current situation in the company and the actions that are being taken to
strengthen competitive advantages. Upon completion of all procedures, the head of staff service
will need to adjust the structure and functionality in accordance with the changed strategy.
In 2016, Deloitte conducted a study - Global Human Capital Trends 2016, in which a
number of HR management experts conducted an extensive analysis, examining the experience
of more than 7,000 companies from 130 countries. Thus, 10 major trends in the development of
human capital in modern companies were identified. One of the key trends in human resource
management is the continuity of a business strategy with a learning and development strategy
(Deloitte 2017). Thus, companies are looking for opportunities to improve their efficiency,
influencing the KPI process of learning and development. In this regard, companies resort to
modern innovative methods, changing the paradigm of employee perception in the company and
the processes of continuous development (Deloitte 2017).
According to this study, the organizational structure of modern companies is retreating
from traditional functional models in favor of more mobile. In these models - coaching,
mentoring and mentoring of managers and subordinates is implemented at the level of everyday
interaction and daily tasks.

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In the process of developing HR management, a new way of thinking is being formed in
relation to the formation and development of the company's human capital. HR management in
modern companies is carried out within the framework of an organization's development
strategy, with the involvement of management at all levels and has a very broad level of
responsibility (Upchurch & Effron, 2018). For the most effective identification and assessment
of employee potential, companies use their own and adapted potential models. According to the
research of The Talent Strategy Group 2018, one of the key criteria for assessing potential in
international companies are:
1. Learning rate (62%);
2. Ambition (51%);
3. Values (43%);
4. Mobility in the near term (42%) (Upchurch & Effron, 2018).
Future trends
First, the future would be dominated by technology. Mobile platform will dominate. The
dominance of the mobile platform in the recruiting process will continue to grow. Leading
organizations will allow applicants to get a job using only their mobile phone, and leading firms
will make recruitment applications available from a mobile platform. LinkedIn is becoming # 1
among social media and will be recognized as the main tool for attracting staff. The use of
Twitter will also continue to grow, while Facebook will begin to take soy positions. The impact
on the recruitment and development of employer branding on the social site glassdoor.com will
rapidly increase. In order for managers to have access to sources that contain only the best
candidates, applicants will be able to take a test assessing their knowledge and skills online

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Second, the future will be characterized by competitive analysis of talents. Most
companies currently do not conduct any formal competitive analysis, but there are the following
trends in advanced companies. Competitor analysis and intelligence are on the agenda. A
modern, unstable, highly competitive business environment requires that all functions become
more focused. In recruiting, this is reflected in the growth of competitive analysis and
intelligence in the field of hiring; plans will be developed to track and counter competitor moves.
An indispensable process will be a comparison of its functions of recruiting programs and
initiatives of competitors, in order to ensure that the proposed approach has tangible benefits.
Firms are beginning to "map" their future talents. Leading firms will start looking for top talents
working for competitors. Professional communities will be used to pre-screen the best candidates
for key positions (Deloitte 2017).
Third, the recruitment will start in college. There will be a tendency to move to distant
recruitment programs for future graduates, instead of visiting leading universities, as today
almost all students are on the Internet or social media, and organizations can focus on the most
successful students. To do this, you can use remote online interviews, contests, grades and tests.
Leading organizations recognize that referral recruiting model, which has proven its
effectiveness among employees, can be easily adapted to receive information from recent
graduates, interns, employees and the best college students.
Automation in HR-management is also an important modern trend. Automation in HR
covers routine functions at all stages of personnel management, that allows human resource
managers fulfill human resource management goals effectively. The systems of automating the
search for candidates are being actively used in order to speed up and convenience, allowing to
focus on the correct assessment of a specialist. In the evaluation of personnel, where the human

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resource manager is expected to utilize not only professional but also personal qualities,
automatic testing methods are handy because they offer objective evaluation results.
Conclusion
Evidently, the human resource management is the most dynamic area in management.
The analysis reveals that the human resource management is facing numerous challenges and
that the future trends are many. It is upon the current and future human resource managers to be
flexible so as to keep up with the trends.

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List of References
Deloitte (2017) Rewriting the rules for the digital age 2017 Deloitte Global Human Capital
Trends, Available from:
https://www2.deloitte.com/content/dam/Deloitte/global/Documents/About-Deloitte/central-
europe/ce-global-human-capital-trends.pdf (accessed on 10/31/18)
Upchurch, Z. & Effron, M. (2018) The Talent Management Revolution, Available from:
https://www.talentstrategygroup.com/application/third_party/ckfinder/userfiles/files/Talent
%20Management%20Revolution(3).pdf (Accessed on 10/31/18)