The changing role of HR and opportunities of virtual immersivity
In the past century, HR departments have undergone a significant transformation. The first prototype HR department emerged in the early 1900s to handle workers’ strikes and walkouts. Since then, HR has evolved to become an essential part of organizations, overseeing talent recruitment, onboarding, and training.
Today, HR is no longer just about touchy-feely people skills. Instead, it uses data and people analytics to assess and refine training for the workforce. This enables HR to help mold decision-making and goals in organizations. HR departments now strive to ensure that employees are excited to go to work and create packages tailored to their career needs.
To achieve these goals, HR has had to change the way they work. The recruitment of the right talent is of vital importance. Since the COVID-19 pandemic, work patterns and practices have changed. More and more companies work remotely, enabling workers to balance work/home life better, leading to a more fulfilling feeling in their employment.
Recruitment Statistics
It is acknowledged that more diversity in ages is conducive to a learning and productive company. HR has had to become more like marketing specialists to attract new talent; however, the turnover of staff has also risen.
For Gen Z (age 6-24), the average time spent at a job is 2 years and 3 months.
For Millennials (25-40) that figure is 2 years and 9 months,
Gen X (41-56) are at a job for an average of 5 years and 2 months,
Baby Boomers (57-75) spend 8 years and 3 months at a job
Gen Z switches jobs at a rate 134% higher than before the pandemic in 2019, according to LinkedIn. Comparatively, Millennials changed jobs 24% more, and boomers switched 4% less.
Gen Z is more likely to work multiple jobs (25%) than the average professional (16%), according to McKinsey
Switching jobs paid off: Gen Z job-hoppers got nearly a 30% average raise from changing jobs in the last year, according to the Bank of America Institute.
Because of the frequency that GenZ changes employment, HR has now turned its lights onto retention of staff and the reasons why staff leaves.
Retention of employees is now a priority, and the use of statistics helps define the company’s policies to the needs of the workforce.
Employee retention tops the list at 20% for priorities for businesses in 2023, followed by recruiting at 14% and company culture at 12%, according to HRReporter.
Paychex ’s statistics also show that the reasons for retention of the workforce are slightly different for varying ages. Baby Boomers (46%) reported that flexibility in work hours or schedule would make them stay long-term at their organization. This is more than Gen X (38%), Millennials (31%), and Gen Z (24%).58% of respondents said lack of appreciation was a reason for leaving their jobs (People Managing People).
70% of employees report that the quality of the team leader creates more engaged employees and work relationships. (Gallup)
76% of Gen Z, see upskilling as key to their career advancement.
This requires the HR teams to be more flexible when working with multigenerational employees, and adaptable to the gig economy (short-term contracts or freelance workers) favored by Gen Z. They will be more data-driven and focused on re-skilling for continual improvements in the workplace. This will lead to more specialized HR teams, with titles like culture developer, director of wellness, and head of gig economy, and technical specialist.
The way people work now has also changed a great deal since Covid19, people have been able to work from home, and many companies now employ hybrid working, (in the office on odd days). HR thinking is way ahead in these fields, preferring home working as part of a permanent business model. The reasons are varied but the basics are, (among businesses who reported this) improved staff well-being (60%), followed by reduced overheads (43%) and increased productivity (41%).
In a few words, What do Gen Z like?
- Improved staff wellbeing
- Reduced overheads
- Increased productivity
- Reduced carbon emissions
- Ability to recruit from a wider geographical pool in the UK
- Ability to better match jobs to skills
- Reduced sickness levels
- Ability to recruit from a wider geographical pool internationally
Office for National Statistics – Business Insights and Conditions Survey
Training and support
Ongoing training is a must for any company wishing to compete in the fast-changing world we now live in. On-the-job training will take precedence with staff completing performance reviews more often than the custom of once a year, with the opposite end of the workforce age spectrum baby boomers and Gen Z, seeking up skills, more frequently.
In the rapidly evolving landscape of the metaverse and tech market, it is imperative for HR departments to adapt to the changing needs of employees. While HR’s role in the past primarily revolved around managing employee grievances, today it has evolved to become a crucial function that nurtures a healthy and productive work environment for all employees. Despite the less hands-on approach, HR now plays a vital role in every stage of an employee’s journey, from hiring to orientation and beyond. In order to engage and retain the best talent, HR must tailor its approach to align with the ethos and principles of the company and foster a sense of community among its employees.
As someone with personal experience in the virtual world, I have seen firsthand how virtual environments can be highly engaging and addictive. Virtual worlds offer a unique opportunity to bring emotions to the fore, without the need for specialized equipment or ideal workspaces. Today’s youth are increasingly turning to these virtual lands for both work and play, as hybrid work is already proving to be a successful venture. However, these virtual worlds still need to be more regulated and up to the standards that younger generations demand. As Gen Alpha enters the workforce, it is essential for companies to prioritize the environment, happy workmates, and flexible work arrangements in order to retain these employees who are statistically more likely to move jobs sooner.
While bookending in the metaverse may prove challenging due to time zones, the increasing flexibility in working hours and locations allows for more personalized and meaningful interaction. Gen Z values flexible working not just in hours, but also in changing roles and multi-tasking. Therefore, HR departments must place a strong emphasis on fostering a sense of community and mentorship, as well as maintaining a work-life balance, and creating opportunities for career advancement from within the company. The metaverse presents a unique opportunity for global collaboration, socialization, and training, and HR must be at the forefront of adapting to these new trends in the tech market.
The virtual world presents unique opportunities to combat burnout and mental health issues. By creating a supportive, mentally soothing, and inclusive environment in virtual settings, HR departments can promote collaboration, socialization, mentorship, and gamified cool-down time, which are all essential components of a healthy workplace culture. As more and more employees work remotely, HR must also find innovative ways to maintain a sense of community and connection among team members.
