3 HR trends that will reshape organizations in 2019

You have probably heard the phrase, "New year, new luck." Well, 2019 is already here, and it certainly comes with a new set of challenges. Let's look at some of the HR trends that are shaping conversations this year.

No matter the industry, the companies that stay competitive are the ones that keep evolving and adapting. Those that do are better positioned to respond both to changing market expectations and to the needs of the people within their organizations. Based on broader observations in leadership and human resources, three trends stand out in 2019: customer centricity, people-oriented leadership, and employee engagement.

Customer centricity

More and more companies are focusing on improving the customer experience. A report by research company Econsultancy found that many organizations see customer experience as their most important competitive advantage for the year ahead, and it highlights several reasons why leadership should not overlook it. The report also shows that organizations that are truly customer-centric are nearly twice as likely to exceed their business goals by a significant margin.

Building a customer-centric culture can bring strong returns. At the same time, the report points out that "great customer experiences don't happen by accident. They require well-coordinated efforts across the entire organization, starting with senior leadership's commitment to putting the customer at the center of decision-making." Building this kind of culture starts at the top, but it also depends on the active involvement of every employee. Management needs to commit to putting the customer first and to model the behaviors that support that commitment so others can follow.

People-oriented leadership

Employees naturally want to work with leaders who show empathy, conviction, and authenticity. Unfortunately, according to Professor Dacher Keltner of the University of California, Berkeley, many leaders experience what he calls "the power paradox." In other words, the higher they climb, the more likely their behavior is to worsen. In his research, Professor Keltner found that leaders are three times more likely than their subordinates to interrupt or insult others, multitask during meetings, and raise their voices.

At the same time, the role of managers remains critical. They need to balance two core responsibilities effectively. On the one hand, they need a strong understanding of financial indicators, business strategy, and management. On the other, they need to communicate well, inspire people, and lead in a way that others are willing to follow. What matters is the connection between the results leaders deliver and the way they achieve them.

Employee engagement

According to Gallup's 2018 employee engagement study, engagement has increased. The report found that 34% of employees worldwide are engaged, the highest level ever recorded. The share of working-age people who are disconnected from work for one reason or another has also dropped to a record low of 13%. These are encouraging figures for employers, and they are not accidental. In recent years, organizations have invested significant resources in improving employee engagement, and they are now seeing the results of those efforts.

The data should encourage companies to continue investing in engagement and, as a result, improve business performance. According to Gallup:

Organizations with the highest levels of employee engagement achieve earnings-per-share growth that is more than four times higher than that of their competitors. Top-performing companies report significantly stronger customer engagement, higher productivity, better employee retention, fewer incidents, and 21% higher profitability. Engaged employees also show better health outcomes.

One of the important factors behind stronger engagement is learning and development, especially for high-potential employees. This requires leadership teams to create and implement strong programs that support employees in reaching their career goals.

Looking at the bigger picture

It is no surprise that these trends reflect three of the most important parts of a successful business: customers, leaders, and employees. It is also worth recognizing that focusing on only one of these areas is not enough. What is needed is a broader strategic approach that can make a real difference in the year ahead. Take a close look at where your business stands and assess how well you are addressing each of these three trends. Identify the areas that need development and invest in them to support progress across all three.