HR Trends for 2016

Top 3 HR trends for 2016

In 2016, look for organizations to tighten their focus on people management, from building an inclusive company culture to increasing employee engagement. HR trends to watch for 2016 include these three hot topics:

1. Increased use of data analysis

Analyzing data to gather consumer information has been a staple of marketing strategy for decades, but data analytics is only now starting to catch on for HR professionals. One study indicates that the use of big data for people management is gathering momentum, with the current industry average at 42 percent. Smart HR professionals will be honing their data analysis skills so they can make meaningful contributions to strategic conversations in 2016.

2. Revamped performance management processes

Research shows that traditional performance management processes are falling by the wayside. A 2014 Deloitte study determined that only 8 percent of HR professionals considered their performance management process to be a key driver in adding value to business operations. However, that number jumped to 75 percent in the 2015 survey. In fact, 89 percent of respondents stated that they plan to change their performance evaluation process in the next 18 months.

This overhaul is overdue. In our 2015 North American Workforce survey, we discovered that 60 percent of respondents don’t receive on-the-spot feedback. The traditional annual and semi-annual reviews do little to remedy systemic issues with timely feedback and performance management, and fortunately many HR professionals are beginning to agree.

3. Updated employee development

The final HR trend for 2016 is a shift in the approach to employee training and development. Gone are the days in which staff can expect only enough training to perform their job functions. Today’s workers want continuous improvement of their skills in order to prepare for promotions or pursue passion projects.

In a study by the Society for Human Resource Management, 42 percent of workers considered their employer’s commitment to professional development to be very important to their engagement, but 46 percent were dissatisfied with their employer’s commitment to building skills. Business leaders are becoming aware of the changing emphasis on development, as the issue moved from the eighth most critical challenge for employers in Deloitte’s 2014 survey to the third most critical challenge in the 2015 report.

With the job market transitioning from employer-driven to candidate-driven, retaining top talent stands to be a challenge in 2016. Increased employee engagement is critical to staying competitive, and forward-thinking managers will ensure that they lead the way when it comes to increased data analysis, improved performance management processes, and enhanced employee development.

3 replies
  1. Seth
    Seth says:

    Good insight! As a proponent of Employee Engagement, I liked this, “Increased employee engagement is critical to staying competitive, and forward-thinking managers will ensure that they lead the way when it comes to increased data analysis, improved performance management processes, and enhanced employee development.”

    Actually, this is a relevant INFOGRAPHIC on Employee Engagement:

    Feel free to share and let me know your thoughts and input on the infographic.

    Thanks for the article!


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  1. […] Top 3 HR Trends for 2016 (Engage, Achievers, 6 Jan 2016) […]

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