2016 has been quite the year. People everywhere are eagerly waiting for New Years Eve so they can watch the ball drop and finally leave 2016 behind. As we move forward into 2017, there is a hope that this year will be significantly better than the last. Though the world experienced some negative changes, there was still a lot of positive forward movement, especially in the field of Workforce Management. The workforce is continually evolving, forcing organizations to rethink the way they manage human capital. As the field continues to develop, there are some major workforce management trends organizations should have on their radar this year. Here are some of the things to watch for in 2017:
The Cloud
No matter the industry, there is a significant increase of organizations moving to the cloud. With the recent development and growth of the Internet of Things, the amount of data necessary is increasing. “Cisco predicts that soon, 92% of all workloads will be cloud-borne… Database, analytics and IoT workloads will account for 22% of total business workloads by the year 2020, up from 20% in 2015. The total volume of data generated by IoT will reach 600 zetabytes (zetabytes!) per year by 2020, 275 times higher than projected traffic going from data centers to end users/devices (2.2 ZB); 39 times higher than total projected data center traffic (15.3 ZB).” (Forbes)
What does this mean for workforce Management? The more data generated, the greater the necessity for Cloud data centers. Managing on-premise servers when interacting with such large amounts of data proves to be a very expensive and arduous process. If an organization cannot completely jump to the cloud, a hybrid solution may be the next best choice. The healthcare industry is seeing the brunt of these changes. With the increase of monitoring devises and a rise in necessary communication, healthcare providers cannot rely solely on an on-premise solution. "According to a report published by MarketsandMarkets, the IoT in the healthcare vertical is projected to be worth $163.24 billion by 2020, growing at a compound annual rate of 38.1 percent from 2015 on." (Pinnacle) The IoT is reliant on the cloud, meaning organizations who have moved to cloud computing to improve healthcare processes are already experiencing the benefits of the relationship between these two technologies.
Upgrading Kronos
As organizations begin to consider their budgets and strategies for the New Year, it may be time to consider upgrading your Kronos application. Kronos released Version 8.0, leaving all applications two versions behind at risk of sunsetting. The Sunset Factor refers to the age of your Kronos version. The older the age of your version, the higher the risk of limited technical support becomes. The longer the upgrade is delayed, the more the potential grows for complications from workarounds associated with supporting outdated versions. In some cases, vendor support will even end, and a concrete “point of no return” sunset date will be set. If your Kronos application remains at a sunsetting version and encounters a serious complication, there may be no vendor to work with the outdated system, leaving your organization exposed.
Beyond the risk of sunsetting, you organization may want to consider upgrading in order to more effectively manage your workforce. Workforce Central can be the ultimate tool for creating a strategy for maintaining and nurturing a healthy and engaged workforce. The process of building a compelling environment for all employee demographics involves using the data gained from WFM software to “operationalize” employee engagement. Each employee has his/her own unique set of needs and expectations. Kronos Workforce Central allows organizations to begin to transform their workforce's unique needs into actionable strategies to increase overall employee engagement. Since every workforce is different, it is important to consider your specific needs before investing in WFM software. The upgrade to Version 8.0 is a great first step towards streamlined workforce management.
Evolving Workforce
The workforce will continue to evolve as we move forward into 2017 and beyond. Generational differences will become even more apparent as Gen Z becomes active in the job market. As Gen Z begins to grow, Millennials will begin to rise in the ranks of many organizations. In fact, a recent study by HBR reported that 36% of Milliennials are now in managerial positions or higher. Those numbers will only increase as more and more Baby Boomers step into retirement.
The rise of Millennials and Gen X has begun to shift the dynamic of the workforce. Research points to a rise of value on teamwork, instead of on individual performance. The walls between departments are beginning to be torn down, as collaboration is encouraged and focus turns to creating highly effective teams within the workplace. Building and fostering teams has been proven to reduce silos within the workplace and to improve overall corporate culture. The new organizational strategy of cross-function and cross-departmental teams will begin to shape the workplace over the next couple years. Gen Z and Millennials are pushing for a highly communicative and flexible work environment. Organizations who are looking to recruit top talent will have to shift the way their workforce functions in order to attract the new face of the workforce.
Compliance
Earlier this year, a Federal judge in Texas has blocked the new overtime rule, created to raise the FLSA’s salary threshold. An injunction was filed due to a lawsuit challenging the DOL’s authority to raise the salary threshold, bringing organizations across the country to a stand still. Judge Amos Mazzant of the U.S District Court of the Eastern District, who granted the injunction, said, “A preliminary injunction preserves the status quo while the court determines the department's authority to make the final rule as well as the final rule's validity.” Read more
There is not yet word on how long it will be before the regulation is revised. A statement from the DOL confirmed that they would most likely challenge the injunction. “We strongly disagree with the decision by the court, which has the effect of delaying a fair day’s pay for a long day’s work for millions of hardworking Americans. The department’s overtime rule is the result of a comprehensive, inclusive rule making process, and we remain confident in the legality of all aspects of the rule. We are currently considering all of our legal options.” Read more
Because of the halt on the new overtime rule, it can be assumed that compliance will be a critical component of workforce management in the coming year. If your organization is subject to state or federal labor laws, make sure to have a strategy in place to mitigate risk. Compliance is a critical component of contingent workforce management. Many industries are subject not only to state and federal labor laws, but also to industry-specific credentialing. When hiring managers are responsible for contingent workforce management, the risk of noncompliance increases. "According to the 2016 State of Compliance survey conducted by data management and integration provider Liaison Technologies, one-quarter of top executives are unclear who in their organization is responsible for compliance. And nearly half (47 percent) of respondents to the survey of 479 senior and C-level executives said they don't know which compliance standards apply to their organizations." (CIO news) Moving into 2017, organizations should be aware of changes being made with compliance and who will manage those changes.
Although there are big changes happening in the workforce, there is so much potential to positively grow and expand using the many capabilities of your Kronos application. Improvizations wishes you a New Year full of success and growth!
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