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What are some HR trends for 2021

Post by
Karthick Sundar
What are some HR trends for 2021

With the pandemic marching at an unprecedentedly unstoppable rate, living in the 21st century has undoubtedly become a struggle. From adjusting to the 'work from home' culture to becoming tech geniuses, the year 2020 has transformed the work culture for almost all industries.

Amidst all the chaos and confusion, there still exists a sense of certainty when it comes to the Human Resource teams.

Research shows that HR experts will remain crucial in boosting employee engagement and supporting continued business growth. Not only will the HR industry be expected to monitor employees but also see the addition of important responsibilities ranging from a particular focus on the mental health of employees to ensuring productivity through virtual ….


It can be challenging to manage a company's most valuable assets properly; its employees. To be more effective at their jobs, HR teams often turn to technological assistance such as HR software to automate tasks wherever possible. Such measures help achieve higher-value objectives like keeping employees happy and engaged, improving employee retention, and recruiting the best talents.

While 2020 taught us that change was the only constant, 2021 will push us to improvise and implement changes. The upcoming year will be about going beyond functionality and improving productivity.

We've curated a list of expected trends for 2021.


1. Artificial Intelligence in HR

AI focuses on improving HR work and contributes to the experiences of employees, which ultimately contributes to better recruits. The technological advancement has born fruitful results by enhancing the following tasks:

  • Applicant sourcing, assessment, and screening
  • Enabling more straightforward access to curated data and visualization, ultimately making insight-driven, strategic thinking a lot easier.
  • Ensuring employee psychology safety with tools that customize learning paths and continuous management can help create an environment where employees perform at their peak. 

  • AI will also prove to be a valuable tool by easing the process of onboarding and training.

2. Cloud Based in HR

With remote working becoming the new normal, people management processes that meet globally distributed teams' needs quickly and scalably, is achievable through cloud-based HR tools.

3. Virtual Reality 

Collaboration and productivity tools are moving hand in hand. It's essential to upgrade our monitoring systems and keep the motivation flowing but acknowledge employees' work aptly. VR is particularly useful for screening processes of employees that require hands-on labor.

In case of a high-stress work profile, introducing the concept through VR is a more practical and safe approach.

4. Reskilling Workers

Achieving corporate goals is now done through 'Quality over Quantity.' Instead of recruiting new employees, there is pressure to reskill and optimize the existing workforce. With a shortage of revenue and a downfall in the economies, companies focus on upskilling the current workforce's insufficient digital competency. It's a challenge for the GR team to create an environment where employees can learn as they work at their own pace by adopting effective L&D (learning and development) strategies.

5. Gig/Freelance Economy

A better work-life balance, avoiding a single source of income to maintain the security of money inflow, and enjoying the flexibility and creativity of short-term jobs are being sought actively by the fresh batch and the existing batch of talents.

The freelance attitude seems to witness a sharp spike as people prefer to work on their terms and conditions. A healthy mix of contractors, freelancers, and full-time employees is the way to go.

A lot has changed and continues to every day. While everything is available at the click of a button, achieving instant gratification still remains the ultimate goal and the driving force for millennials and Gen-Z. Ensuring and delivering better than the best has now become the need of the hour. While it might have increased the HR teams' workload, it has also introduced a new working mechanism, making the job an even more important part of running a successful team.