TRENDS AND CHALLENGES IN THE GLOBAL HUMAN CAPITAL MANAGEMENT MARKET
The conventional idea of human resource management is on the verge of getting obsolete. This is being replaced with innovative human capital management (HCM) strategies. The modern job market is embedded with a sense of increased competitiveness and complexities that is leading to the growing rise of the global human capital management market. HR management will go through a series of changes with technological innovations being in the underway.
Trends in human capital management market
- Adoption of AI and machine learning: AI and machine learning are greatly impacting most business areas, with HR being no exception. Innovations like AI-powered chatbots and intelligent automation are proving to be primary disruptors with traditional HR approaches toward recruitment, employee engagement, and learning and development becoming obsolete. AI and machine learning are used in data management to track massive amounts of data to automate repetitive processes, and incorporate interactive modules across all touch-points.
- Rise of Big Data: as volumes of data from digital platforms increase, HR leaders are using analytics to transform employee engagement, learning and development, retention, and other functional areas. Leveraging the power of analytics, HR practitioners are looking to build a data-driven culture across organizations for real-time survey, employee sentiment analysis, organizational network analysis, and also for seeking feedback to offer real-time coaching.
- A mobile-first approach: a mobile friendly approach is being undertaken for different HR tasks - recruitment, onboarding, benefits, payroll, or rewards. The younger workforce have come to expect the same ease of accessing technology at the workplace, as they experience in their personal lives. HR managers, thus, are focusing on making the entire employee journey more interactive, conversational, and impactful through mobile devices.
Challenges faced by the human capital management market
- Synergy of the tool with other systems: to ensure human capital management software is successful, everything from payroll and recruitment to employee benefits management and resource planning needs to be closely knit and smoothly coordinated.
- Data inconsistency: this is one of the major challenges when deploying human capital management systems in an organization. As data is generated from different tools deployed by various departments, inconsistencies are inevitable. Dependence on too many applications can lead to lack of consistency and reliability.
- Lack of competent resources: widespread adoption of human capital management tools have led to increased need of manual labour. For human resource professionals this is a major problem with human resource management tools. Entering and collating data from all aligned tools within the human capital management ecosystem is a tedious task requiring a lot resources.
The global human capital management sphere is an emerging field with several possibilities. With technological developments defining human capital management, there is increased hope that the challenges will be overcome soon with more growth lined up in this industry.