New trends in personnel management: EY review
KYIV, OCTOBER 3, 2018. EY specialists prepared a review of global trends in the field of talent management – another part of industries’ trends review project, initiated jointly with KYIVSTAR. The study analyzed the impact of global megatrends on approaches to staff management and featured practical recommendations on how to increase the effectiveness of HR sub-functions and develop a successful corporate culture.
Olga Gorbanovskaya, Partner, People Advisory Services, EY Ukraine: “We are witnessing the emergence of a new era, influenced by the rapid development of technology, demographic and geopolitical shifts. Changes happen at an incredible speed in all spheres of life and relate to each of us. They require new skills and, most importantly, new approaches to work organization. Companies that will win the market in five years will be significantly different from what we know today. To achieve success, it is necessary to understand what exactly causes changes, where the world, business, and society are moving. If you do not act today, tomorrow may be too late.”
According to global studies , the main factors that influence personnel management include technological progress, demographic changes, and geopolitical situation.
With the growing population of the planet, customers and employees are becoming more demanding, forcing companies to look for new ways to meet their needs and interact with them. It is expected that the number of middle class in developing countries will increase by more than one and a half times, and as incomes grow, expenses, according to analysts, will also increase (according to forecasts, by more than five times by 2030) .
Globalization stimulates the free movement of labor and capital to places with more favorable conditions and causes new ways of interaction. As a result, it is becoming increasingly difficult for companies to attract and retain talented employees. In such conditions, the business needs to be very flexible and adaptive.
To achieve business goals in the condition of constant changes in the market, companies are transforming operational models and investing in various automation tools. At the same time, it is important to learn how to benefit from combining the work of people and machines for the common good. The best option is when artificial intelligence does all the routine work, thereby allowing a person to use ones intelligence to solve non-standard problems, to perform in-depth analysis and to use imagination. For this, it is necessary to create an appropriate environment where investment in culture is just as important as in technology.
According to EY experts, in order to build an organization that can demonstrate effectiveness in times of constant changes, you need to implement a human-oriented approach to personnel management (Human-to-Human Approach). This means that companies should define a mission and unique corporate values, determine and develop a set of skills and qualities for employees, and manage the engagement level of staff. Corporate culture is the main competitive advantage that cannot be copied because it is the only factor that can be controlled in a changing environment. Its components are likely to remain unchanged, but their characteristics will change to fit the new employee and business profile.
In order to ensure a positive working experience of employees, companies need to change approaches to managing key HR sub-functions, which include strategic workforce planning, recruitment, and selection, training and development, performance management, recognition and reward, career development and leadership.
The strategic workforce planning function allows companies to make decisions on staffing in order to implement a business strategy. Personnel planning is critical to organizational success, but most managers are not satisfied with the current process in their companies. As a response, companies plan to invest in the employee training – as a part of change management and workforce planning programs. Companies should also pay attention to HR analytical tools for strategic planning purposes and consider the possibilities of attracting a combined workforce. More often companies are attracting not only full-time employees but also external industry experts, freelancers, contractors for particular projects or seasonal employment. It is expected, that their share in the total structure of the labor force will grow up to 30% in the next 10 years .
The talent search – this is what the process of recruiting is called today – went far beyond the scope of directly finding and hiring employees, involving all departments and activities of the company in this process. Most of the existing models are quickly becoming obsolete, since they do not meet the challenges of the latest technologies, changing business needs and the growing abilities of candidates. The main trends in recruiting include rethinking of the search process, development of the employer’s brand and the use of modern technologies for processing large data sets.
Personnel training and development is one of the most important tools for HR. An effective training process aims at providing employees with information that will help them develop the necessary skills to achieve the goals of the organization. Training programs contribute to the quick and successful adaptation of new employees, and serve as a tool of attraction and motivation, developing a sense of belonging to the company, which greatly increases the efficiency of work. The newest concept of Lifelong Learning combines both the very idea of permanent learning, development and obtaining new qualifications, as well as tools that help put this idea into practice. Many companies have already realized the need to change the approaches to corporate training and have undertaken to adapt training programs and introduce new personnel development tools. HR-specialists may use an approach called “micro-education”, which provides content delivery in small and light portions intended for familiarization within a few minutes. The transition to micro-education is a fascinating trend, which could be a good addition to the existing programs and training methods in the company, without replacing them completely.
Personnel performance management is one of the key tasks of HR since only a strategic and integrated approach to employee performance management can ensure the success of an organization. Conducting a regular assessment of staff performance allows you to reconcile personal and corporate goals, to identify areas for further development and directions for the most productive work of employees and the organization as a whole. According to the “EY Review of HR Policies and Practices – 2017”, 86% of companies in Ukraine assess the performance of employees, 61% of whom do this once a year.
In modern conditions, it is becoming more difficult for an employer to remain competitive and attract talented specialists. More often companies are experiencing the need to introduce additional measures to attract and retain the best employees. In addition to increasing wages and bonuses, advanced companies seek to comprehensively revise the approach to the reward system, ensuring its transparency, flexibility, and uniqueness.
According to EY Ukraine annual “The Best Employer” survey, career growth remains a key factor among students to choose a place of work. At the same time, experienced candidates prefer a more comprehensive development, in particular horizontal, constantly expanding their experience. In this regard, more and more companies are moving to flat organizational structures, in which employees grow not only vertically, but also horizontally, actively joining cross-functional projects. The task of HR specialists in this direction should be to create conditions under which employees can actively develop and meet current and future business requirements.
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 Megatrends Shaping 2016 and Beyond, EYQ, 2016
 World Economic Forum; United Nations Population Fund
 Skills shift automation and the future of the workforce 2018, McKinsey & Company, 2018
PR Manager, EY Ukraine
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