Modern trends and

challenges in HRM
By:
Dr. Shumaila Mazhar Khan
MODERN TRENDS IN HRM

1. Digital Transformation in HR

HR Technology Platforms: Use of tools like SAP Success Factors, Workday, and
Bamboo HR for recruitment, payroll, and performance tracking.
AI in HR: Artificial intelligence in hiring (e.g., resume screening, chat bots for
recruitment).
People Analytics: Leveraging data to predict employee turnover, assess
productivity, and improve engagement.
A data-driven approach to analyzing and optimizing workforce performance,
engagement, and decision-making in HR functions.
2. Remote and Hybrid Work Models
Increase in remote work due to technological advancements and global
disruptions like COVID-19.
Emphasis on virtual collaboration tools like Microsoft Teams and Zoom.
Challenges in ensuring productivity, communication, and employee well-being in
remote setups.
3. Employee Experience

Focus on improving every touch point in the employee journey, from onboarding
to exit.
Use of pulse surveys and feedback tools to measure employee satisfaction.
Emphasis on creating a positive work culture to attract and retain talent.
4. Up skilling and Reskilling
Rapid advancements in IT require continuous learning to keep employees
updated with new technologies.
Organizations are investing in Learning Management Systems (LMS) and
partnerships with e-learning platforms like Coursera.

5. Diversity, Equity, and Inclusion (DEI)

Recognizing and valuing differences in gender, race, age, and backgrounds.
Implementing policies that foster inclusive hiring and equal opportunities for all
employees.
6. Flexible Benefits and Well-Being
Programs
Personalized benefit plans to meet diverse employee needs
(e.g., health insurance, mental health resources).
Emphasis on work-life balance to reduce burnout and enhance productivity.

7. Employer Branding
Establishing a positive organizational reputation to attract top talent.
Utilizing platforms like LinkedIn and Glassdoor to showcase company culture
and achievements.
CHALLENGES IN HRM FOR IT INDUSTRY




1. Talent Acquisition and Retention

Intense competition for skilled IT professionals.
Managing the expectations of tech-savvy employees regarding career growth,
work flexibility, and compensation.

2. Rapid Technological Advancements

Keeping employees updated with ever-evolving technologies.
Managing automation and its impact on job roles.
3. Globalization
Managing a diverse and geographically dispersed workforce.
Handling legal, cultural, and regulatory differences across countries.

4. Cyber security and Data Privacy

Protecting sensitive employee and organizational data in a digitalized HR environment.
Ensuring compliance with data protection regulations like GDPR.

5. Employee Engagement in Virtual Environments

Building team cohesion and engagement in remote or hybrid work models.
Overcoming challenges in virtual onboarding and team-building activities.
6. Generational Workforce Differences
Managing expectations and work styles of multiple generations, from Baby
Boomers to Gen Z.
Addressing generational gaps in technology usage and communication
preferences.
Silent Generation:1920-1945
Baby Boomers: 1946–1964
Generation X: 1965–1980
Millennials (Generation Y): 1981–1996
Generation Z: 1997–2012
Generation Alpha: 2013–Present

7. Managing Change
Adapting to shifts in market demands and technology innovations.
Helping employees navigate transitions like organizational restructuring or new
software implementations.
How HR is Changing Due to Technology
and AI: A Function-Wise Perspective
1. RECRUITMENT AND SELECTION
Traditional Approach: Manual job postings, resume screening, and in-person
interviews.

Technological Shift:
AI-Powered Tools: AI-based platforms (e.g. LinkedIn Recruiter) streamline
candidate sourcing, resume screening, and initial interviews.
Applicant Tracking Systems (ATS): Automates job postings, application tracking,
and communication with candidates.
Predictive Analytics: Analyzes candidate data to predict cultural fit and
performance potential.
How HR is Changing Due to Technology
and AI : A Function-Wise Perspective
2. ONBOARDING
Traditional Approach: Paperwork-heavy processes with minimal personalization.

Technological Shift:
Virtual Onboarding: Use of digital platforms like Microsoft Teams.
Onboarding Portals: Self-service portals where new hires complete
documentation and access company resources.
Immersive Technology: Virtual Reality (VR) for office tours and role training.
that create engaging, interactive experiences by blending digital and physical
environments.
How HR is Changing Due to Technology
and AI: A Function-Wise Perspective
3. TRAINING AND DEVELOPMENT
Traditional Approach: Classroom-based, static training modules.

Technological Shift:
E-Learning Platforms: Platforms like Coursera offers personalized, self-paced
learning opportunities.
Gamification: Training modules include interactive games and rewards to boost
engagement.
Virtual Reality (VR) and Augmented Reality (AR): Simulated environments for hands-
on technical training.
Learning Management Systems (LMS): Tracks progress, recommends courses, and
provides certifications.
How HR is Changing Due to Technology
and AI: A Function-Wise Perspective
4. PERFORMANCE MANAGEMENT
Traditional Approach: Annual appraisals with subjective evaluations.

Technological Shift:
Continuous Feedback Tools: Platforms like 15Five and Workday enable real-time
feedback.
Data-Driven Evaluations: People analytics tracks employee performance metrics,
offering insights into productivity and engagement.
AI in Goal Setting: AI tools recommend SMART goals and monitor progress
against them.
How HR is Changing Due to Technology
and AI: A Function-Wise Perspective
5. EMPLOYEE ENGAGEMENT
Traditional Approach: Periodic surveys and physical team-building activities.

Technological Shift:
Pulse Surveys: Digital tools like Glint and Qualtrics provide quick and frequent
feedback from employees.
Gamified Engagement Platforms: Apps with leaderboards, challenges, and
rewards to motivate employees.
Virtual Collaboration Tools: Zoom and Microsoft Teams foster engagement in
remote work settings.
How HR is Changing Due to Technology
and AI: A Function-Wise Perspective
6. PAYROLL AND BENEFITS ADMINISTRATION
Traditional Approach: Manual calculations and paper-based record-keeping.

Technological Shift:
HRIS/HRMS: Integrated systems (e.g., Bamboo HR, SAP Success Factors)
automate payroll processing and benefits management.
Block chain for Payroll: Enhances data security and transparency in payment
processing.
Personalized Benefits Platforms: Employees select benefits that suit their needs
via digital tools.
How HR is Changing Due to Technology
and AI: A Function-Wise Perspective
7. EMPLOYEE WELL-BEING
Traditional Approach: Limited focus on wellness initiatives.

Technological Shift:
Wellness Apps: Tools like Calm and Headspace provide mental health resources.
Wearable Tech: Devices track physical activity, encouraging fitness goals.
Telehealth Services: Online platforms provide easy access to medical
consultations.
How HR is Changing Due to Technology
and AI: A Function-Wise Perspective
8. COMPLIANCE AND RISK MANAGEMENT
Traditional Approach: Manual tracking of labor laws and compliance requirements.

Technological Shift:
Automated Compliance Systems: Tools monitor regulatory changes and alert HR
teams to necessary updates.
AI for Risk Detection: Predicts and prevents workplace issues such as
discrimination or harassment.
How HR is Changing Due to Technology
and AI: A Function-Wise Perspective
9. EMPLOYEE RETENTION
Traditional Approach: Relied on exit interviews and periodic surveys to understand
turnover.

Technological Shift:
Predictive Analytics: Identifies employees at risk of leaving, enabling proactive
retention strategies.
AI Chatbots: Provide 24/7 support to address employee concerns, boosting
satisfaction.
How HR is Changing Due to Technology
and AI: A Function-Wise Perspective
10. STRATEGIC DECISION-MAKING
Traditional Approach: Decisions based on intuition and limited data.

Technological Shift:
People Analytics: Provides actionable insights into hiring trends, performance
metrics, and engagement levels.
AI-Powered Forecasting: Predicts workforce needs and assists in succession
planning.