In recent years, the workforce has noticeably evolved, from advancements in technology that enabled new forms of working to the coronavirus pandemic and sudden cultural shifts, all of which have contributed to these new changes. In an effort to keep up with the evolving landscape, workforce management needs to overcome hurdles and quickly adapt to sudden changes, to ensure the success of their business. To that end, here are some of the most important current workforce management trends every leader needs to follow:
Shifting to a distributed workforce model
Even before the coronavirus outbreak, the world saw an increase in remote working during the preceding years, with the recent global situation only escalating the number of employees deciding to work from home. Evidently, remote working is likely to become the new norm, which could potentially be beneficial to workers and businesses alike.
A large percentage of companies have reported that employees who work from home tend to be more efficient and productive than their in-house counterparts, while remote workers often cite flexible working hours and a better work-life balance as a significant benefit. It seems like employers must prepare themselves for a distributed workforce in the near future, which can be achieved with the right workforce management tools that will help to ensure growth.
The increase in talent mobility worldwide
The global workforce is expected to reach an all-time high in the following years. For larger corporations and smaller businesses alike, this might present an issue. Well-known business hubs such as New York, San Francisco, and London will likely be out of focus in the near future, with more attention being put on cities like Hong Kong, Mumbai, and Kyiv, due to their rapid increase in population size.
Similarly, such mobility can be seen domestically as well. The economic uncertainty of the COVID-19 pandemic has forced a significant percentage of the workforce to move from urban areas into suburban regions in an effort to reduce costs of living. Apart from highlighting the need for remote work, such workforce shifts have also made suitable talent increasingly more difficult to find.
Partnering with employers of record
Due to the rise in remote working and top talent shifting worldwide, businesses now have to find new solutions for recruiting and managing their workforce. Presenting itself as the ideal solution, partnering with a trusted and experienced employer of record is currently the wisest move any company can make in the current workforce landscape. Whether you wish to find domestic workers for in-office needs or even foreign employees to hire as remote workers or staff for potential growth, an employer of record (EOR) is a great option.
Such experts have access to top talent that would otherwise be difficult to find during these competitive times, while efficiently managing the supply chain by engaging vetted and qualified workers, negotiating fair rates, and helping to drive performance. By implementing technology and automation, a professional EOR will also be able to devise cost-saving plans, track worker engagement and performance, and even offer data-driven insights, thus truly providing everything a company might need for expanding its workforce.
An intense fight for top talent globally
Considering the increase in mobility and the emphasis on remote working, global markets can likely expect an intense fight for quality, skilled talent. When it comes to those businesses who chose not to work with employers of record or employ similar solutions, HR managers need to expect workforce shortages in more mature markets, and a surplus of labor in emerging economies.
For instance, countries like Germany and the US might expect a slow increase in labor supply, having populations significantly older than the world average, while countries such as China could see more rapid growth, thanks to having a younger population and heavily investing in higher education. Subsequently, HR leaders might need to prioritize incentives and develop efficient strategies for recruiting the best talent globally instead of locally.
Different forms of compensation
As a result of workers moving to more remote, rural areas, large corporations like Facebook decided to introduce salary cuts to remote workers. However, approximately one-third of workers found this decision to be quite inequitable and unfair. It seems like salaries based on the talent and specialized skills of workers will be the most important aspect, rather than focusing on their area of living.
As employees now have the ability to deliver the same quality of work regardless of their geographical location, remote working might make the philosophy of market-rate compensation entirely irrelevant. In turn, pay based on location won’t be a priority any longer; experience and skills will become more important salary rate factors moving forward.
With the advancement of technology enabling remote working, combined with changing market needs, workforce trends are slowly moving towards mobility, flexibility, and compensation based on productivity. Companies that embrace these new trends are most likely to achieve growth and success in the near future.