Top 10 Workplace Trends

The rising cost of health care and the growing use of outsourcing are two of the top trends HR professionals say will have the most impact on the workplace in the next 10 years, according to a survey by the Society for Human Resource Management (SHRM) in the US.

More than 1,200 SHRM members responded to the SHRM Workplace Forecast survey. Though a number of different issues made it to the top of the list of trends, three key ongoing themes appeared to underlie the majority of the top trends:

• The rising cost of health care.

• The implications of increased global competitiveness.

• Demographic changes, especially the aging of the workforce and the impending mass retirement of the baby boom generation.

As in 2004, the rising cost of health care was the trend HR professionals felt would have the largest impact on the workplace and the HR profession. Not only did the rise in health care costs in general reach the top of the list, but several related issues, such as the threat of health care costs on US economic competitiveness and the rise in the number of individuals and families without health insurance, were also among the most important trends HR professionals identified.

Overall, the top three trends that HR professionals said will affect the workplace over the next decade are rising healthcare costs, the growing use of offshoring and outsourcing, and the threat of increasing healthcare costs to US competitiveness.

"Increasing market pressures are a growing focus for HR professionals," says Susan R. Meisinger, president & CEO of SHRM. "Issues like healthcare costs, access to skilled workers, and business practices are all key areas where HR can and must play a substantial role in helping organisations be more globally competitive." HR professionals identified the following as the top ten trends that will affect the workplace overall:

1. Rising healthcare costs.
2. Increased use of outsourcing/offshoring of jobs to other countries.
3. Threat of increased health care/medical costs on the economic competitiveness of the US.
4. Increased demand for work/life balance.
5. Retirement of large numbers of baby boomers around the same time.
6. New attitudes toward aging and retirement as baby boomers reach retirement age.
7. Rise in the number of individuals and families without health insurance.
8. Increase in identity theft.
9. Work intensification as employers try to increase productivity with fewer employees.
10. Vulnerability of technology to attack or disaster.

The very number of large issues that HR professionals identify as having a potentially significant impact on the workplace and on the HR profession illustrates how many factors can have an influence on the working world. With so many issues to consider, planning for the future can be a challenge. HR professionals have already responded to many of these trends. For example, more than 55 percent of surveyed HR professionals already use succession planning in order to prepare for the loss of organisational leaders. But many of the challenges posed by broader trends are just beginning to be addressed by organisations.

The survey contains an exhaustive list of the actions that organisations are planning to take to respond to the key trends. Below you will find a list of the top ten actions organisations are planning to take:

1. Training line managers to recognise and respond to generational differences.
2. Changing health care policies and plans as a result of projected demographic changes.
3. Succession planning.
4. Measuring human capital.
5. Changing health and safety policies and practices to reflect aging workforce.
6. Implementing preventive health programs.
7. Expanding the use of technology-based employee and manager self-service applications.
8. Making changes in company policy as a response to federal regulations.
9. Carrying out studies to determine projected future demographic makeup of workforce
10. Investing more in training and development to boost skills levels of employees.

As you can see, some of the top actions reflect the most urgent trends, such as rising health care costs. Others are more reflective of changes specific to the HR profession. Overall, it is clear that HR professionals are considering a huge range of issues as they plan for the future and are already taking action today.

For more information on the report, visit the SHRM website at http://www.shrm.org/trends.

Copyright 2006 Great Lakes HR Now and CBS Radio Inc.  Used by permission.  All Rights Reserved.