Workplace Trends

Published on April 14, 2020

10 Human Capital Trends in 2019

The market today in a constant state of flux. HR professionals need to stay informed and aware of trends that impact talent and workers in the marketplace as it relates to recruiting, training, and improving the benefits and compensation for your employees.

Nearly 10,000 HR professionals in 119 countries have responded to Deloitte's 2019 Global Human Capital Trends report. They have identified ten human capital trends that you need to know. These responses have been divided into three actionable categories: future of the workforce; future of the organization; and future of human resources. Although the report is from 2019, all of these trends are applicable even in 2020 and beyond.

Here is a summary of the ten trends.

1. The alternative workforce is now mainstream

The days of contract, freelance, and gig employment as alternative work or coupled with full-time jobs are beginning to go away. Today, they have grown to become mainsteam and companies are strategically planning different types of work arrangements in order to grow.

See: How the Alternative Workforce Is Reshaping the Future of Work

2. Jobs will be 'superjobs'

Companies are strategically designing jobs to be more digital and data-driven, due to increased use of AI and digital transformation. These 'superjobs' will be blended from different traditional jobs combined with roles that influences the productivity and efficiency gains that can emerge when people work with technology.

See: AI Fuels The Rise Of Highly Integrated 'Superjobs'

3. Leadership's new approach for the 21st century

Many of the survey's respondents believe that companies have new leadership needs. To be successful in the 21st century, leaders must take a nuanced approach to pursuing traditional business goals which is take into account the new context in which such goals must be accomplished, and draws on critical new competencies, such as leading through change, embracing ambiguity, & understanding digital technologies.

See: 25 Essential 21st Century Leadership Skills

4. From employee experience to human experience

The importance of improving the "employee experience" is an opportunity for companies to refresh and expand this concept to address the "human experience". They also need to understand the ambitions workers have to connect work back to the impact it has on not only the company, but society as a whole.

See: How Human Resource Leaders Can Create and Maintain Better Employee Experiences

5. The shift from hierarchies to teams

The research shows that many leaders do not know how to operate in teams and have not yet adopted the team model of engaging with each other. Many companies are still struggling to build programs and incentives that support teaming. The chance lies within using technology to make team models of work easier as organizational performance is a team sport.

See: The Rise of the Team-Based Organizational Structure

6. Closing the gap of rewards to motivate employees

Companies are looking into different perks and rewards to motivate their employees. The research shows that many companies' rewards systems are not aligned with their organizational goals and other companies don't even know what their employees value. There needs to be a focus on building relationships with their own workers and avoiding external benchmarking to create a differentiated group of rewards.

See: Why It’s Time to Rethink Your Rewards and Compensation Strategy

7. Recruiting is very challenging

Because of the competitive job market and the talent & skills that companies want are changing, companies need to strategize how they can will "access talent" in different ways: use internal resources, find people in the alternative workforce, and leverage technology to increase sourcing and recruiting productivity.

See: 67 Percent of Recruiters Say It's Harder Than Ever to Find Talent. Here's How to Beat the Odds

8. The demand for new skills and capabilities

This is the number one trend for 2019. The research shows that many companies find the need to change the way people learn is important. Within this context, there are three broader trends in how learning is evolving: It is becoming more integrated with work; it is becoming more personal; and it is shifting—slowly—toward lifelong models. Companies need to create a culture that supports continuous learning, incentives that motivate people to take advantage of learning opportunities, and focus on helping employees identify and develop new, needed skills.

See: The 10 Vital Skills You Will Need For The Future Of Work

9. The importance of internal, enterprise-wide talent mobility

Companies must shift to moving and developing their employees internally, instead of expecting to source and hire enough people with all the skills they need, in order to thrive. To do this successfully, a new set of norms governing internal mobility is needed. At top companies, mobility should be perceived as a natural, normal progression instead of as a major change in one’s career; opportunities to move should be extended to workers at all levels, not just managers and team leaders; and technology should enable a streamlined mobility process for moves between functions, jobs, and projects as well as geographies.

See: Talent Mobility: The Key To Unlocking Your Organization's Potential

10. HR cloud: A launch pad, not a destination

Companies need to rethink their HR digital strategy, considering the cloud as a foundation and exploring innovative new platforms, automation, and AI-based tools to supplement their core systems.

See: 10 Ways Cloud HR Software is Changing the Way Human Resources Works

Deloitte recognized that reinvention can be a daunting prospect, especially when the survey shows that many companies are not ready to address the changes their ten trends describe.

The future of HR belongs to leaders who can look ahead and define a landing place that works for their companies, clients, employees, and society at large. There is a human focus in this reinvention, and it offers a way through the challenges and uncertainties we face today. Both looking at small details & thinking big picture, asking questions about what is affecting companies and their people today and tomorrow is extremely important to move forward.

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