Unit 5: Emerging Trends in HR

Emerging Trends in HR

In the modern business world, Human Resource Management (HRM) is evolving due to digitalization, data analytics, and strategic business needs. Two major emerging trends are:

Human Resource Audits

A Human Resource Audit is a systematic examination and evaluation of HR policies, procedures, documentation, systems  and practices.

🎯 Purpose

• To ensure compliance with laws and policies
• To improve HR effectiveness
• To identify gaps or risks
• To align HR with organizational goals

Types of HR Audits

Type	Focus Area
Compliance Audit	Legal and regulatory compliance (e.g., labor laws)
Strategic Audit	HR alignment with business strategy
Functional Audit	Recruitment, training, compensation, performance management
Climate Audit	Employee satisfaction and workplace culture
Safety Audit	Health and safety practices at the workplace

Benefits

• Minimizes legal risks
• Improves HR processes
• Boosts employee confidence
• Helps in better decision-making

Human Resource Information System (HRIS)

HRIS is a software or digital system that stores, manages, and processes employee data and HR operations.

🛠️ Functions of HRIS

Function	Description
Employee Information Management	Stores employee profiles, contacts, job roles, documents
Payroll & Benefits Management	Automates salary, deductions, taxes, and benefits tracking
Attendance & Leave Tracking	Tracks time, attendance, leave requests, and absences
Recruitment & Onboarding	Manages job postings, applications, selection, and induction
Performance Management	Tracks goals, feedback, and appraisals
Training & Development	Tracks employee learning and training records

Advantages of HRIS

• Reduces paperwork and errors
• Improves HR efficiency and accuracy
• Provides real-time data and analytics
• Enhances decision-making
• Saves time and operational costs

📝 Summary Table

Topic	Human Resource Audit	Human Resource Information System (HRIS)
Definition	Systematic review of HR policies and practices	Digital system to manage HR data and processes
Purpose	Improve compliance and efficiency	Streamline and automate HR operations
Focus Areas	Compliance, strategy, safety, employee climate	Payroll, attendance, recruitment, training
Benefits	Minimizes risk, enhances policy implementation	Time-saving, accurate, data-driven HR decisions

Human Resource Accounting (HRA)

Human Resource Accounting is the process of identifying, measuring, and reporting the value of human capital (employees) in financial terms in an organization’s accounting system.

🎯 Purpose

• To treat employees as valuable assets, not just costs.
• To measure the contribution of human resources to business performance.

Methods of HRA

Method	Description
Cost-Based Method	Calculates the cost incurred in hiring, training, and developing employees.
Value-Based Method	Estimates the future economic value employees will bring to the organization.

Benefits

• Better HR decision-making
• Enhanced strategic planning
• Improved resource allocation
• Transparent investment in talent

Business Process Re-engineering (BPR)

Business Process Re-engineering is a radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed.

🔄 Key Concept

"Start from scratch" – rethink how work is done instead of just improving existing methods.

Steps in BPR

Step	Description
1. Identify Processes to Re-engineer	Focus on key, high-impact processes
2. Analyze Existing Processes	Find inefficiencies and gaps
3. Redesign the Process	Use technology and innovation to redesign
4. Implement Changes	Train people and update systems
5. Monitor Results	Evaluate performance post-implementation

Benefits

• Reduced process time and cost
• Improved customer satisfaction
• Higher efficiency and flexibility

Contemporary Talent Management Issues & Challenges

Talent Management involves attracting, developing, and retaining skilled employees. In the modern era, HR faces many new challenges:

Major Contemporary Issues & Challenges

Issue/Challenge	Description
Remote Work Management	Managing productivity and engagement of remote employees
Skill Gaps	Need for reskilling due to automation and digitalization
High Employee Turnover	Difficulty in retaining top talent
Diversity & Inclusion	Ensuring equal opportunity and inclusive culture
Gen Z Workforce Expectations	Managing younger employees’ demand for flexibility, purpose, and fast growth
Work-Life Balance	Increasing demand for mental health and personal time
Data-Driven HR	Use of HR analytics to make decisions, but requires new tools and skills
Employer Branding	Competing for talent in a competitive job market

Summary Table

Topic	Key Points
HRA	Measures the value of human capital as an asset in accounting.
BPR	Redesigns business processes for dramatic performance improvement.
Talent Management Challenges	Involves issues like remote work, skill gaps, retention, diversity, and technology.