Human capital management faces transformation

The role of human capital management will change more in the next 5 years than it has in the past 30. Technology advance and changing business needs will impact on HR in profound ways. Read more on where our robot thinks competitive advantage can be gained through taking a modern approach to human capital management.
What is changing?


  • Seventy percent of CEOs expect the Chief HR Officer (CHRO) to be a key player in enterprise strategy.
  • HR will be called upon to help employees adapt to a workplace in which robots and automation will play an ever-bigger role.
  • There is expected to be a push for businesses to employ mobile tech that will allow employees to pull up company information in real-time in an effort to make it simpler to collaborate on projects and move away from endless post-meeting email chain updates.
  • HR departments will have more trouble persuading younger workers to stick to the rules.
  • Security technology will be integrated into systems and deliver a return on investment to the end-user through leveraging the technology in multiple applications (HR and time and attendance etc.).
  • Teams will need to increasingly work together to achieve the right results.
  • Tomorrow’s CHRO will go beyond attracting and developing talent to using data and analytics to build a high-performance culture.
  • New models for performance evaluation, compensation, and time off could be created to foster collaboration and innovation.
  • Employees will exercise more control over work selection, work load, and salary.
  • Integrating social media into HR service delivery has risks and challenges.
  • Today’s recruits expect the ability to interact with a company and its HR functions through social media.
  • Today’s employees expect the ability to access HR systems and services 24/7 from anywhere on the planet.


  • HR leaders expect to begin or increase the use of big data and advanced analytics.
  • The radical change in business models will mean that companies will be facing further issues such as the need to create ever more sophisticated people measurement techniques to monitor and control performance and productivity.
  • 6,400 organizations with 100 staff or more will have implemented big data analytics by 2018.
  • Human resources will benefit from developments in applicant tracking systems and recruiting software.

Shared services

  • There will be a growth in the scope of shared HR services.


  • Mobilizing unused human resources could provide the European economy with an additional decade of employment growth needed to sustain GDP growth at 2 %.
  • L&D will need to work very closely with HR to design a holistic ecosystem that participates and collaborates with prospective and existing employees for professional development.
  • As companies continue to globalize and as talent becomes harder to find locally-companies will increasingly be composed of a global, highly diverse workforce.
  • Employee engagement will increasingly become a shared performance objective for both IT and HR groups.

Competitive advantage

  • Companies that take the time and make the investment to build people analytics capabilities will likely out-perform their competitors significantly in the coming years.


  • A metric-driven formula that can successfully determine when technology solutions are a superior substitute for labor will someday become common in HR.
  • HR leaders expect to begin or increase the use of big data and advanced analytics.
  • HR will develop real-time response to data feeds as it evolves into a key part of the wider performance team.
  • People analytics has the potential to change the way HR will work.


  • 67% of companies identified people, talent and key management as a principal risk yet 97% do not have HR representation on the board.
  • There is a strong focus on creating the right culture and behaviors and on guarding against sustainability and reputational risk across the supply chain.


  • There will be important opportunities as automation creates new jobs that haven’t even been thought of today.
  • Rigid labor markets will inevitably hamstring a company’s human resources management strategy.
  • A lack of skilled labor could constitute an early brake on growth even for countries that have significant labor reserves.
  • The demand for human resource (HR) professionals is expected to grow slightly in the next decade.
  • Human resources will work with the business to design work that not only allows the company to reach their goals, but creates jobs that make the most sense for both people and the business.
  • In the future the world of operational HR will be almost totally automated and will either disappear into the cloud or be outsourced.
  • Businesses and HR professionals need to be prepared for the possibility that more than half of the workforce will want to be employed beyond the state pension age.

Learn more
Find the sources and more resources on Shaping Tomorrow about Human capital management faces transformation‘ some of which were used in this Trend Alert, or ask us for our ready-made and free, in-depth PowerPoint report on this or any other topic of interest to you. Also, click here to find out how Shaping Tomorrow can help your organization rapidly assess and respond to these and other key issues affecting your business.


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