Workforce Trends: Ensure Your HCM System Keeps Up with Change
Significant trends are affecting the world of work and encouraging businesses to adapt their HCM systems to continually keep pace. Explore key workforce triggers signaling the perfect time to optimize systems, while offering key success enablers that organizations should prioritize.
In a world where change is the only constant, recognizing and adapting to workforce trends are not just strategies; they're imperatives. The rapid evolution of market dynamics calls for continuous reassessment and revitalization of human capital management (HCM) systems, and yet, a staggering 73% of human resources leaders1 have confirmed their organizations' leaders and managers are not equipped to lead change1, which spotlights the critical need for technology solutions that facilitate and support adaptive leadership.
Against this backdrop, five emerging workforce trends may present challenges to organizations when it comes to HCM system implications. Employee disengagement, data errors, and massive inefficiencies become more likely when workforce dynamics and employee behavioral norms change, without concurrent updates to workforce systems.
Workforce triggers
You know it's time for a system refresh when your organization must:
Adapt to leadership changes
When new, transformational leaders take the helm, they typically face the challenge of inheriting an HCM system configured to support their predecessors' goals, which may not align with their new direction. By optimizing an HCM system, new leaders can ensure the system aligns with their strategic priorities.
Navigate high-volume employee turnover
Certain industries are inherently prone to high employee turnover rates. The retail, hospitality, and customer service sectors, for example, typically experience higher churns due to seasonal demands, market fluctuations, and the nature of their job roles. High turnover rates present a dual challenge: the direct costs of recruiting and training new employees and the indirect costs of knowledge loss and operational disruptions.
In such scenarios, an HCM system becomes a critical asset because it must manage the logistics of hiring and onboarding and ensure continuity and transfer of knowledge. A personalized approach to system training and knowledge management is crucial in industries whose high turnovers are givens. A personalized approach ensures that the departure of one employee does not lead to a knowledge vacuum and that new hires can quickly get up to speed and contribute effectively.
"ADP Professional Services training is highly personalized to the customer. We have set topics that we cover, but we customize the program based on a client's specific implementation and, more importantly, the client's priorities and goals for the system within the context of the overall market environment."
—Ryan Russell, Manager, Client Advisory Services
Prepare for a fragmented workforce tech stack
New workforce metrics capture and use data effectively—and in alignment with new workforce objectives and benchmarks. Ensure you're taking advantage of enhanced reporting capabilities, custom reports, and easy-to-use data visualization tools that empower organizations by providing actionable insights and facilitating informed and agile decision-making.
Keep pace with the challenges of hybrid workforce
The growing hybrid workforce is arguably one of the most defining outcomes of the 2020s. More and more organizations are embracing a blend of remote and on-site working arrangements—a model that offers flexibility and autonomy to employees. However, managing a dispersed workforce requires robust systems that can adapt to such a workforce's nuances and ensure seamless communication, collaboration, and compliance across geographic boundaries.
Such robust systems must navigate the complexities of multistate and international compliances, time zone coordination, and remote-employee engagements and productivities. A mobile-friendly HCM system that can adeptly manage those aspects can help ensure that the employee experience is consistent and positive—whether in the office or working from a coffee shop on the other side of the country.
Adjust to shifts in employee demographics
Baby boomers are exiting the workforce at a slower pace nowadays by opting to delay retirement and earn longer, whereas Generation Z is entering the workforce in droves. The modern workplace is not just age-diverse; it also embraces the broad range of identities that employees bring to the table with regard to gender, culture, religion, and ability. That transition has birthed a kaleidoscope of perspectives, expectations, and working styles.
The demographic evolution necessitates a more inclusive and personalized approach to talent management. HCM systems, therefore, must evolve to capture a comprehensive range of data points that reflect employees' multifaceted identities. The systems must facilitate and champion a user experience that acknowledges individual differences and creates an environment in which employees feel valued and empowered to contribute their unique perspectives and skills.
Keep your HCM system ahead of the trends
Your HCM system should do more than just keep up; it must be a step ahead because of the rapidly changing nature of people management. Be sure your system offers robust, accurate, and intuitive data and reporting capabilities. Such capabilities can help your organization avoid noncompliance penalties, harness data for strategic decision-making, foster trust and transparency with employees, and, ultimately, steer the organization toward a culture of inclusivity.
The ADP Professional Services team offers a comprehensive suite of services spanning Advisory, Implementation, Integration, and Transformation. They can help ensure that your ADP Workforce Now® system is a strategic asset capable of helping to drive your organization forward.
Explore how ADP Professional Services can help you stay ahead in the ever-evolving world of work.
