Partnering with a more human resource

The 5 trends that redefine Human Capital Management

Posted by: ADP on 18 November 2015 in Human Capital Management

“What’s new?” and “what’s next?” are two questions that business owners and executives often ask. Trend research is one of the ways to gain good insight into what is likely to be coming down the road, as you manage your business and its most important assets: your employees.

Over two-thirds (65%) of companies around the globe, according to Towers Watson, are concerned about retaining critical skills and top performing employees. In addition, more than half of employers are concerned or very concerned about the shortage in skilled talent. At stake are business productivity, the capacity to grow and much more, which makes developing and engaging employees and managing their performance key priorities.

The quality of a company’s Human Capital Management (HCM) strategies can speak volumes about a business and its future. An organisation’s approach to staffing that focuses on managing employees and supporting their continuous improvement reveals itself in strategic metrics like employee satisfaction and retention rates, not to mention customer or client satisfaction and retention rates. The best HCM programmes are strategy-driven, align an organisation’s people strategy with their company’s overall values and goals, and give decision makers the flexibility to respond to business changes.

Sadly, research shows that 93% of companies have no concrete talent management strategy in place. In addition, emerging trends are likely to test the mettle of even the best talent management programs.

Here are five such trends (and accompanying challenges) that are expected to have an impact on Human Capital Management.

TREND #1: Increased Globalization

 Today’s workforce is increasingly global. ADP reports that 40% of employees now work outside of their organisation’s home country. From compensation planning to performance reviews and learning tools, a widespread workforce demands the efficiency of standardized global HCM processes. Standardization (including integration) can also help drive profitability.  According to Cedar Crestone research, standardizing HCM processes to improve productivity can translate into 38% more profit per employee.

TREND #2: Shifting demographics

“Gen Y” employees bring new tools and technological skills to the workplace, which need to be embraced by employers if they want to retain top talent. Frost & Sullivan research found that this year, 70% of all employees will rely on mobile devices to manage their daily workload. Additionally, social media is expanding. In this new environment, HCM mobile tools, social integrations and clear communication of social media policies are non-negotiable.

TREND #3: Solution integration

Simple is smarter. According to ADP Research Institute®, on average, companies are currently managing more than eight separate HR and payroll systems or vendors. The result? Another burden on the HR team. In fact, over half (58%) of HR staff time is spent on administrative tasks, and 19% of time is wasted on feeding data into multiple systems. New solutions that integrate systems and functions are fast becoming the norm, helping to reduce errors, avoid duplicated efforts, minimize manual labour and free up HR for more strategic necessities.

TREND #4: More compliance

The business regulatory environment is expanding. According to ADP internal data, nearly 19,000 changes were proposed to the tax rules in 2013. This reflects an upward trend. Compliance requirements – employment laws, labour practices, taxation, data privacy and equal opportunity regulations – are costly, time-consuming and increasingly a moving target, as deadlines on employment tax regulations continue to shrink.

TREND #5: Increased cost containment

As more businesses adopt a global view of what can impact their bottom line, human capital planning is of particular interest. This is an area where a poor effort can result in a major drain on costs due to process inefficiencies or the inability to acquire and retain key talent. Studies show that firms that have instituted a Human Capital Management strategy are able to reduce their total cost of ownership – the total amount spent per employee on all HR-related services – by an average of 26%.

Successful businesses confront HCM challenges

For businesses with an eye on the future, destiny is a matter of choice not chance. Hiring, managing and retaining top talent demands a talent management programme that will serve a business well, whether the marketplace is tightening or expanding. Research confirms this. According to findings from Bersin by Deloitte, the effective use of HCM strategies increases a company’s ability to respond to economic conditions and reduce the chances of having to execute a major redundancy programme.

A business that knows the capabilities of its employees, the needs of its customers, and has the products and services in place to succeed should be well prepared for the challenges that may arrive on the wings of strategic HCM trends. Does this describe your business?


Talent Management: Benchmarks, Trends, & Best Practices, Bersin & Associates, 2010.

ADP: Strategic Global Mobility Issues: A Review of Global Organizational Challenges and Alignment,

Worldwide ERC® and ADP, 2013.

ADP: After the Transformation: Achieving Strategic HR, ADP, 2008. 4 NelsonHall, 2011.

(Visited 546 times, 1 visits today)

TAGS: Compliance globalization HCM talent management TCO workforce

Post a response

Leave a Reply

Your email address will not be published. Required fields are marked *

DennisShili says ivermectin 1mg

Travisbup says

how much is viagra at walmart viagra over the counter walgreens how long for viagra to take effect

ArtrImmug says

overnight cialis delivery viagra cialis online were can i buy cialis

StroWap says

can you buy ivermectin at a feed store ivermectin soolantra ivermectin poisoning in humans

StroWap says

buy liquid ivermectin ivermectin head lice ivermectin 50 mg

EdwardMut says

cialis for pulmonary hypertension cialis nova scotia cialis generic cost

EdwardMut says

what is in cialis ingredients cialis stopped working cialis usa

Frankplano says

doxycycline usa doxycycline 400 mg daily where can i buy doxycycline capsules

Frankplano says

amoxicillin buy canada amoxicillin 500 mg price can you purchase amoxicillin online

Frankplano says

prednisone daily use how much is prednisone 10mg prednisone 60 mg

Frankplano says

buy clomid online australia clomid australia buy buy clomid 100mg online

Frankplano says

can i buy clomid online in australia can you buy clomid over the counter us buy 10 clomid pills

Frankplano says

can i buy amoxicillin over the counter amoxicillin 500 mg for sale amoxicillin 500 mg cost

Frankplano says

doxycycline price comparison doxycycline cream over the counter doxycycline 40 mg india

Haroldsaisy says

best ed supplements ed medicine 100mg viagra without a doctor prescription

Haroldsaisy says

ed pills cheap top rated ed pills errection problem cure

Haroldsaisy says

canada ed drugs 100mg viagra without a doctor prescription soma therapy ed

Haroldsaisy says

natural treatments for ed cheap erectile dysfunction pills buy ed pills

Haroldsaisy says

generic viagra without a doctor prescription errection problem cure how can i order prescription drugs without a doctor

StacyMek says

buy cialis overnight shipping generic cialis express delivery cialis prescription cost

StacyMek says

how can i order prednisone how to purchase prednisone online 54 prednisone

StacyMek says

how to treat ed drugs to treat ed dysfunction erectile

StacyMek says

ivermectin for swine oral ivermectin 6 mg walgreens cattle ivermectin

StacyMek says

prednisone cream rx prednisone 5 mg tablet rx prednisone pill

CharlesKen says

use of ivermectin ivermectin 0.08%

JeffreyTib says

best male ed pills impotance ed meds online pharmacy

JeffreyTib says

erectile dysfunction medications pet antibiotics without vet prescription ed aids

JeffreyTib says

canadian drugs online best drugs for erectile dysfunction ed drug prices

JeffreyTib says

does cialis keep you hard after coming cialis pills cialis with dapoxetine online

RogerRinue says

ivermectin capsule ivermectin plus for goats ivermectin poisoning

RogerRinue says

best online canadian pharmacy comfortis without vet prescription comfortis without vet prescription

RogerRinue says

how to cure ed non prescription ed pills medicine for erectile