People management is evolving again.

Just as it evolved from Personnel to HR in the 80s, it’s now transforming from HR into the People function.

The HR Evolution

We surveyed 500 HR and People leaders from Australia and around the globe for a bird’s-eye view of how they’re adapting to the evolution and how these changes will impact the profession.

In the end, five fundamental changes to operational processes stood out as best practices for navigating through this evolution:

1. A new approach to talent acquisition.

One-third of the leaders we surveyed said they’re transforming their approach to talent acquisition. Building a better candidate experience is top of mind for many. Thirty-eight percent have already begun updating their onboarding processes, and 48% plan to do so. How does this change take shape? Twenty-four percent of our survey respondents have already adopted Artificial Intelligence into their approach, while 59% plan to do so within a year.

2. Advance to real-time analytics.

One-third of the leaders we surveyed have advanced their people management systems to a single source for all people data. They’re taking advantage of smart data to get to know their employees in the same way the business knows its customers. Forty percent of HR and People leaders make decisions based on data. An additional 51% are planning to start using real-time data instead of spreadsheets.

3. Prioritise building enhanced workforce experiences.

Workforce experience management is a new priority for many organisations. Thirty-eight percent recognise the importance of the workforce experience and have developed enhanced experiences for all their employees. Forty percent of our survey respondents are using pulse surveys to monitor employee engagement. Almost half (47%) said they have plans to adopt new ways of working within the next 12 months to focus on employee experiences.

4. Continuous feedback is the new appraisal.

Employee appraisals are still relevant, but the process for doing so is changing. Instead, 40% of HR and People leaders continuously collect performance feedback in place of or in addition to an annual review. Thirty-six percent of our respondents are transparent about organisational and personal goals across the business—fifty-two percent plan to add this to their strategy within the next year.

5. Adopt flexible, employee-driven learning and development.

Learning and development opportunities are a trending offering amongst employers. Forty-three percent of HR and People leaders offer employee-driven learning. Employers are also opening up to how employees can use their new skills. Forty-one percent of HR and People teams offer flexible career paths.

More changes to come

Flexible working, data-driven decision making, and continuous performance management are just the beginning of the HR evolution. Ninety-four percent of our survey respondents say the expect further changes in the sector over the next three years.

In this sense, today’s HR and People leaders are in the best position to pioneer the evolution of the world of work. Technology is creating new methods for these leaders to attract, manage, and engage people. Those who take advantage are on the cutting edge of a new digital world of work.

Will you join them?

Download the research report, The changing face of HR, today to discover the research findings in full.