Top 3 Ways HR Departments Will Evolve in 2020

As technology plays a bigger and bigger role in businesses and personal life, HR departments are evolving to meet modern business needs....

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As technology plays a bigger and bigger role in businesses and personal life, HR departments are evolving to meet modern business needs. Artificial Intelligence (AI), automation, machine learning and analytics capabilities are all trends that will continue to grow in the workplace. And yet, businesses are still very much focused on succeeding through knowledge-based workplaces and human talent. How will HR departments evolve in 2020 to help businesses grow in the modern environment?

Top 3 Ways HR Departments will Evolve in 2020

1. From attracting top talent to finding ways to keep employees engaged

HR departments will still be focused on attracting top talent to fill vacant roles in 2020 but they will be shifting some of their energy to keeping current employees engaged in their work. Gallup studied worker engagement in 142 countries around the world in a study called the State of the Global Workplace (2012) and they found that only 13 percent of employees worldwide are engaged in their jobs. High turnover rates cost companies thousands of dollars and when employees aren’t engaged in their jobs, they’re more likely to move on when the next good opportunity presents itself.

According to, the four key factors to enabling employee engagement are:

  1. Creating a strategic narrative that creates a compelling business story, lays out the company’s vision for the future and how employees can contribute to it.
  2. Engaging managers to help employees understand the scope of their role, and helping to coach and develop them into their full potential.
  3. Giving employees a voice by encouraging them to share their ideas, experiences and expertise to solve problems and grow the business. They should also be encouraged to challenge company views, rather than being expected to reinforce them.
  4. Acting with integrity. When employees see managers, executives and business owners conducting the business with integrity, they will gain respect for their employer and feel good about their work.

2. From meeting quotas to motivated Diversity, Equity & Inclusion (DE&I) hiring

In the past, many companies felt forced to hire women, minorities, veterans and people with disabilities because of government quotas, programs and affirmative action law. Even when they hired from these groups, many businesses did not compensate them at the same rates as white men. As we move to 2020, companies and HR departments are increasingly self-motivated to adapt their hiring, compensation and promotion practices to be fairer and more inclusive. Inclusive hiring practices gaining popularity are dropping a question about criminal records, and letting go of college-degree requirements or asking applicants for their current salary.

This change in attitude is coming about for many reasons including the fact that by 2065 the U.S. will no longer have a white majority. Forty-four percent of millennials – who make up the largest part of today’s workforce – classify themselves as non-Caucasian and millennials are 16 percent more diverse than baby boomers. But the major reason could be the fact that diverse companies tend to be more successful; one study found that they have a cash flow per employee 2.3 times higher than companies with a uniform workforce.

The Hawaii Diversity Council is a great resource for promoting diversity and inclusion in the workplace.

3. From compliance and decreasing liability to maximizing employee value

Traditionally, HR has had a huge focus on compliance with employment laws and decreasing liability for organizations. While these functions will remain critically important going forward, in 2020 HR will be spending time maximizing employee value by working to align talent and business functions with the purpose of driving business results. This effort is possible because of the growing use of data and analytics readily available in modern HR software.

Partnering with Makai HR

Need an HR partner that can support you into 2020 and beyond? We’ve got you covered through HR outsourcing! When you partner with Makai HR you can get on with the business you are trying to grow while we take care of your employee needs from 401(k) plans to payroll, taxes, health insurance/benefits, and worker’s compensation. You also gain peace of mind that you are in compliance with all of Hawaii’s employer laws (if you’ve ever looked you know that the list is very long). When choosing a PEO to partner with, there are many things to consider including cost, services and technology solutions.

With the cost of doing business in Hawaii at record highs, we know how important it is to keep labor costs in line with revenue. Our plans are priced competitively and include value-added services like time-in/time-out systems. Our three tiers of PEO service plans are tailored to the size of your business and specific needs. We offer a 100% paperless solution which means that your employees can manage their needs through a computer, tablet or phone. We can truly improve your employees work benefits while freeing you up to run your business.

What are you waiting for? Companies who partner with a PEO benefit from 7-9% faster growth, 10-14% lower employee turnover; and they are 50% less likely to go out of business. Contact us today to get started!

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