Radical Changes in the Human Resource Practice in Philippines

October 12, 20158:00 am3251 views

While there have been radical changes in the practice of human resource management in the Philippines, as a matter of fact many Filipino HR practitioners continue to dwell in the same old challenges of the 1980s.

According to recent findings in the Global Human Capital Trends 2015 report, outlining global HR practices around the world, it brought to light some game-changing trends in the world of human resource management, they are:

  • Capability gaps in leadership and learning increased dramatically in importance
  • Culture, engagement, leadership and development continue to be urgent priorities
  • HR skills are not keeping up with the needs of the business
  • While the market for HR technology is quite upbeat, there is a largely unfulfilled promise
  • People analytics are a priority but the progress is quite slow
  • Leadership and development continue to be perennial issues over the years. Ninety percent of the organisations admit to not have made headways to close competency gaps and developing leaders to assume top positions.

The need to accelerate corporate learning has led many organisations to seek innovative measures in learning and development (L&D). According to Deloitte’s survey, only 40 percent of the organisations are confident to be prepared for L&D challenges in 2015, compared to 75 percent last year.

Need to improve employee engagement and retention

Organisations need to focus on developing corporate culture to improve employee engagement and retention. HR leaders need to intensify their efforts to create better understanding of company culture within employees that augurs well for individual effectiveness.

HR managers need to constantly scrutinise efforts and learning programs to determine its effectiveness in engaging and retaining top talents. There has been a game-changing move in the Philippine legislature to make almost every position in the private sector regular, if not permanent.

Eighty percent of the surveyed companies think that workforce capability is a crucial issue and hence there needs to be innovative ways of sourcing talent – buy, borrow or develop talent pool. The market has redefined security of tenure, wherein security in other parts of the globe is no longer equated with a regular position, but on the ability to perform variety of jobs over time. This could involve movement of an employee from one position to another, within a country, company, department or region.

Deloitte says, “It is important that employers who choose this option have the right processes, policies and tools in place so that they can source, evaluate and reward non-traditional talent within their organizations.”

See: Philippines poised to become high-income economy by 2040

New performance contract

According to Deloitte survey, traditional performance management is replaced with innovative performance solutions. Traditional performance appraisals are giving way to more developmental approaches where feedback is more constant and training is done to make employees effective in their jobs.

The role of a HR needs to undergo a major makeover, wherein the scope of HR operations is not just limited to managing a unit but in helping businesses grow. Need to reskill HR practitioners is felt more strongly than ever before.

Deloitte observed that business leaders’ rating of HR’s performance is 20% lower than HR leaders’ self-rating. This signals the imperative to reengineer HR to make it more capable of delivering value across the business.

CEOs of many large organisations are looking beyond the scope of traditional HR to bring in non-HR professionals to fill in the role of a Chief HR officer. If the HR fails to shape up under the leadership of such newly recruited HR practitioners, then the role of HR is outsourced to HR consultants.

Role of Talent Analytics

Findings by Deloitte also noted that very few organisations are doing talent analytics to address complex business problems. Hence, it is required that organisations now invest in leveraging data.

HR analytics can change the technology works for business, however HR practitioners are too slow in taking advantage of HR technology to upgrade its HR function.

Organizations must learn to expand their data strategies by harnessing third party data about their employees or customers from available social media platforms. Social medium has not only become part of organizational culture, but it can also give clues about employee demographics, motivation, and engagement.

With an increasing information workload that increases system complexity, organisations are required to simplify work environments for people to become more effective.

A growing phenomenon that goes unnoticed by HR professionals and organisational leaders is the so-called, “overwhelmed employee.” In the past ideology to thrive in competitive business environment was “doing more with less” however the emerging trend in sophisticated environment is “doing less better” is the new proposition.

The challenge for HR professionals today is to think on how their organisations can redesign jobs to make humans and machines work in tandem for mutual benefits. The increasing software usage into HR technology is making professionals rethink on their ways of doing business and upgrading employee skillsets for career success.

News source: Philippine Daily Inquirer

Also read: Filipino employees less satisfied with their jobs: Survey reveals

Image credits: liveinthephilippines.org

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