5 HR Trends Impacting Companies: Outsourcing, Brain Drain, Globalization, Modern Management, and Technology

Last Updated: 31 Mar 2023
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Identify 5 current trends in HRM and how these trends may effect the human resource practice of the company. Human resource management has evolved from its traditional function as workplace management to a more strategic partner in many companies. Many organizations are witnessing changes in its system due to global alignment. Some of the most observable trends in the human resource management are outsourcing, brain drain, globalization, modern management practice, and technological advancement.

Human resource outsourcing has become a new accession in most midsize firms. Outsourcing HR has become a strategic tool that relieves businesses off its HR responsibilities and focus on their core business. Outsourcing also enables businesses to get the specialised services and have access to vast experience and knowledge. Besides, outsourcing can also help to reduce cost. For example, companies like Sime Darby Auto Connexion have outsourced their HR functions to Sime Darby Global Services Center (GSC).

Sime Darby Global Services Centre (GSC) delivers high performance Finance & Accounting, Human Resource and Information Technology services to the Sime Darby's diverse business in the Asia Pacific Region - Malaysia, Thailand, Vietnam, China, Hong Kong, Macau, Indonesia and Singapore. Its mission is to provide their customers with cost competitive and high quality services. It is achieved by investing in people, processes and in the right technologies.

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GSC continuously seek for and invest in talents that are motivated to deliver outstanding performance and breakthrough ideas and solutions, which are key to providing unparalleled services to its clients. Another pressing trend in the human resource management is the flawed approach to it that has lead to a serious issue of brain drain. The main contributing factor to this condition is the harsh economic and political condition of the country and better opportunity, living and working condition in other countries. According to a recent news release in the Star Newspaper, 57% of Singapore’s professionals are Malaysians.

The brain drain isn’t only a pressing issue in Malaysia but also in other countries such as Italy and South Africa. According to a recent article published in the Time Magazine, Italy is losing its best and brightest talents to decade of economic stagnation, frozen labor market and entrenched system of patronage and nepotism. Many of its young graduates are fleeing to countries like China, Dubai, Washington, etc where they feel their experience and skills are more valued. Human resource managers have to put serious consideration in addressing this issue.

Many young talents leave their home country due to desire to further their careers. Many home companies will not be able to offer financial benefits or resources that are likely to satisfy the demands of these young talents. Thus, creative approach has to be undertaken retain these young talents by identifying other attractive measures to keep them rooted in the home country. The free flow of technology across national boundaries and the spread of Information Technology has presented an ever changing and competitive business environment.

Many companies are opening up their economies to external forces and at the same time penetrating into other countries economy. With the aid of globalization, businesses can now concurrently conduct business in any part of the globe. Globalization has made the business process not only more efficient and effective, but more streamlined and modernized. The corporate sector has become more receptive and reactive as new and innovative ideas and opinions such as the outsourcing of labor have emerged.

The advancement of technology has also tremendously affected the human resource management. Technology has transformed the way in which human resource personnel manage and communicate employee information and communicate with employee. For example, technologies like intranets, webinars and blogs have made communication among employees across the globe easier and faster. Employees can now collaborate virtually and form distant teams to get works done more effectively without the need to meet physically. They hold meetings and share visuals with teams from all over the world.

Technology has also enabled traditional human resource functions such as trainings, seminars and meetings to be held in a more efficient manner via the aid of podcast, tele-seminars, online learning, screen capture and many other technology intensive gadgets. Technology has also brought about difference in employee recruiting. Employee profiles are now easily available via discussion sites such as Linkedln, Facebook, Twitter, Jobstreet and many other social websites. With so many profiles available, recruiting will never be the same again.

What are the factors that need to be considered for recruitment and selection of the company? Recruitment and selection involves attracting the right applicants to apply for vacancies and choosing the best applicant to fill the post. Recruiting individuals to fill particular posts can be done either internally by recruitment within the firm, or externally by recruiting people from outside.

Advantages of hiring internally

There advantages of hiring internally as are as follows:

Save cost- as internal hires already have knowledge about the business operations and will not need much training and time to fit in. Internal promotions can motivate other employees within the company to work harder as it provides a clear sign that the organization offers room for advancement

The firm will know the recruit fills the position perfectly as he/she has already been working in the company and thus reducing the risk of hiring the inappropriate candidate. Disadvantages of hiring from within are:

It might create resentment among existing staff that are not promoted

Those who have been working in an organization for a long period of time may become familiar with expected methods of doing work and may not be able to identify improvements. Position of the promoted person will have to be replaced.

Advantages of hiring externally:

  • External recruiting creates an influx of new ideas into the company. An outsider can review work processes with a fresh perspective and have innovative suggestions for change.
  • Able to hire someone with more knowledge, talent or experience if we have a larger selection of applicants to choose from.
  • When external employees are hired into organizations, especially into management positions, these outside hires don’t have political alliances already set up.

This can help them implement new ideas without the “baggage” of past political battles. And these new ideas are easily accepted and executed by subordinates. Disadvantages of external hiring are that it is more costly and the company may end up with someone who proves to be less effective in practice than they did on paper and in the interview. To what extent the company has to go beyond the number game? HRM implies that planning has to go beyond the 'numbers game' into the softer areas of employee attitudes, behaviour and commitment. The human resource function doesn’t just end in acquiring the ight amount of talent to fit job vacancies but also to place these candidates into jobs that best fits them to get the best out of the employees. These aspects are critical to HR development, performance assessment and the management of change. Employee attitude, behaviour and commitment can be said as employees’ viewpoint on aspects such as their career and their organization. Work situation is one of the major causes of employee attitude and human resource can help address these issues through organizational programs and management practice.

Employee attitude, behaviour and commitment can affect the way employees do their job. Although companies can’t impact employee personality, selecting and placing candidates into jobs that fits them best will help to enhance job satisfaction. There are many ways that human resource department can undertake to improve employee job satisfaction that leads to positive employee behaviors such as:

  1. Handling negative employee relations such as firing in an orderly manner so that it doesn’t affect the motivation of existing employee
  2. Supporting job promotions for deserving employees Providing employees with supports/ aids- financial and morale during hard times
  3. Equal share of workload among employees of the same job title
  4. Supervision that is not too rigid or demanding or too involved in the work process
  5. Supervision that supports and provides needed guidance to employees to complete their job
  6. Offering recognition to employee efforts
  7. Providing employees with meaningful jobs helps to create self-worth and image

The above listed are just the few matters that human resource management division has to look into in order to improve job satisfaction of employees.

With these measures looked into, organization can garner employee commitment towards and their continued participation in organization objectives. Committed workers will normally have good attendance records, demonstrate a willing adherence to organization policies and have lower turnover rates. Having a satisfied workforce can increase productivity of employees by reducing tardiness, absences, extended break hours and slow- downs.

Satisfied workers may normally provide beyond the call of duty, have good work records, and participation in development activities. 1 + 1 can be more than 2 in HRM. Please discuss. Modern HRM is all about synergizing the workforce to work together and create more value than the total individual input. Allowing individuals to work together as teams can help organizations to achieve their goals. Effective work teams magnify the accomplishments of individuals and enable organizations to better serve customers.

With the right amount of motivation, effective work culture, mobilized and empowered employee, these accomplishments can be attained. Empowering employees is one of the most effective method to achieve more within organization. Employee empowerment is when the management vests decision making and approval authority in employees which enables employees to make decisions about their work. Empowered employees feel a greater sense of professionalism, more motivated and feel committed to companies success.

Employees who are equipped with the right tools, information and support to make a more informed decision, acts more quickly and thus accomplish more. Organization culture is also another important aspect for the foundation of empowering employee to be built. The organizations which successfully implement employee empowerment will have certain values at their core from which the process of empowerment can flow.

Among these values are respect and appreciation for individuals and the value they bring to the organization. Culture of the organization must support the thrust of empowerment if there is any chance for success. For example, the working culture in Google allow every employee to be a hand –on contributor and at Google, everyone is believed to be equally important to its success. Googlers share cubes, yurts and huddle rooms and there are very few solo offices which enables them to work together as a team.

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5 HR Trends Impacting Companies: Outsourcing, Brain Drain, Globalization, Modern Management, and Technology. (2018, Oct 14). Retrieved from https://phdessay.com/hrm-issues/

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