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27 May 2022

Human Capital in organizations

Employees are essential assets in an organization and not just the cost of doing business. That’s why we acknowledge them as human capital due to their long-term values. They are unique, and an organization cannot separate them from their knowledge and abilities. So, to ensure adequate production, employees must be managed carefully. For instance, businesses can invest in their education.   

A business that supports employees' growth can develop an effective employee relations program. It can also allow workers to participate in decision making. By doing that, employee turnover will reduce while increasing the value of their human capital. To understand more about human capital, below, we will look at the recent HR trends, digital HR and organizational behavior.

Leading HR trends for the 2022 workplace

Would you like to strategize HR at your workplace? The following HR trends will help you make informed decisions and shape your company in 2022:

The wellness of employees will soon become the future of work: - The well-being of an employee is no longer a benefit to the worker. Instead, it is an employer's opportunity to support their employees in both work and personal lives. This is not only for better productivity but also for a healthy organization. 

The hybrid work model: - Now that things are getting back to normal after the pandemic, the hybrid work model would be suitable for improving employees' productivity. It makes the future of the workplace more flexible by allowing employees to work from the office some days and others remotely. 

Upskilling and reskilling: - In order to improve employee satisfaction, productivity and performance, skill transformation is necessary. So, HR should focus on reskilling their employees to learn new skills. Also, they can practice upskilling to help employees specialize in a core skill. 

Power skills are vital: - These skills include digital and human skills. With the lessons learnt in 2021, we need such skills to help us develop resilience to adapt to the ever-changing work environment. Also, digital/technology fluency skills like using Zoom, WebEx, and Strivr are necessary.

What is digital HR? How is it different?

Over the last few years, "Digital HR" has been a discussion in human resources management. But, what does it mean and how does it impact the HR industry? Digital HR is the digital transformation that is affecting human resources today. It helps organizations in changing operational HR processes to become data-driven and automated. 

For example, instead of doing things the usual HR ways, organizations can use self-service and e-sign applications, automated recruitment, gamification of training, and remote and virtual interviews. Also, digital HR embraces complicated technologies like machine learning, artificial intelligence, and HR analytics. 

Importance of organizational behavior

Organizational behavior is all about how employees interact with each other, their job satisfaction and what motivates them. In general, it describes the behavioral dynamics between individuals and groups in a company. 

Hence, if you're a business leader, it is essential to understand these dynamics to achieve short-term and long-term goals. Also, communication protocols and channels will improve apart from having a comfortable workplace environment. 

Evidently, the future of work is in the hands of business leaders, specifically the HR managers. They should show empathy, resilience, transparency and digital fluency. Also, to increase the effectiveness of their employees, they need to have a deep understanding of organizational behavior. 

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