The PwC Saratoga’s 2012/2013 US Human Capital Effectiveness Report announces: “As the US economy slowly recovers from recession, several challenges are emerging for HR. Hiring is trending upward, but productivity is declining. The employment uptick has brought higher voluntary turnover rates, but not for new hires.” As compared to the past couple years, the five major trends found at over 300 major organizations across 12 industry sectors were:
- Higher labor costs, yet a decline in productivity.
- Increased focus on succession planning (with internal talent) to deal with retiring Baby Boomers.
- Voluntary turnover has increased for the first time in six years; high-performer turnover has risen two years in a row.
- Quality of new hires has improved during the past five years.
- HR is more global and strategic, focusing on workforce planning, predictive analytics, and workforce intelligence.
- Increase in recruiting and hiring.
- Severe shortage of trained, experienced workers in many fields.
- Unemployment rates will remain high.
- Increased spending on training and workforce development.
- Gamification will move to HR (training, performance appraisal, career pathing) to engage millenials.
- Internal social networks for training and development, succession planning, knowledge management, and intellectual capital.
- Unemployed individuals will transition into entrepreneurship.
- Companies will reduce staff to try to optimize productivity, efficiency, and profit… unfortunately, at the expense of engagement.
- High turnover; job churn like it’s 1999.
- Escalating regulatory environment, especially as related to health insurance.
Any trends you’ve noticed so far in 2013?