Future of Human Capital Management (HCM)

Human Capital Management (HCM) has been deeply studied for many decades. Several advances in human resource theory and practice have enhanced our understanding of this subject. The past few years have seen rapid technology changes with emergence of new disruptive business models at rates never seen before. These changes pose important questions for HCM leaders. Past models/frameworks may no longer be effective in the new world. Through this article I have tried to share a perspective on the key trends that I believe would shape HCM in the future.

- Sunita Cherian

The past few years have seen unprecedented changes at the workplace. As new technology driven business models take center stage, the nature of work itself is changing. Hyper automation and Artificial Intelligence (AI) have made many jobs redundant and shall continue to do so. Millennials joining the workforce has introduced an additional complexity. Their expectations and ideas of work are quite radical and differ from that of other workforce constituents. Probably for the first time in the history of the modern industrial world we have four to five generations working together. This in itself is an interesting and complex challenge for HCM.

‘People are our greatest assets’, is an oft quoted statement by leaders. However today, HR departments across the board are dealing with manpower rationalization issues, budget cuts etc. Large companies today are grappling with issues on incubating a ‘Start–Up’ culture that encourages agility, decisiveness and speed while Start-Ups themselves aim to grow bigger and larger while retaining their cultural DNA. Today and in future HCM will have to deal with all these seeming paradoxes.

I see these four as the key trends that shall shape Human Capital Management