What is Job Security Like in the HR Field?
One of the top considerations in deciding on a career track is long-term stability, so human resources job security is a hot issue for specialists in this field.
Human resources functions are generally considered back-office operations that do not directly affect the company’s core business in the same way that marketing and sales specialists do. The HR department handles hiring, firing, training and talent management. The functions include administrative tasks such as payroll processing, documentation and records maintenance and employee benefits management. All of these functions are crucial in ensuring that human resource assets are managed effectively. However, HR departments are subject to attrition due to changes in business processes and advances in technology.
How Outsourcing Affects HR Job Security
Outsourcing some in-house tasks to third-party providers will free up the staff to focus on core functions that contribute directly to the bottom line. Unfortunately for the HR department, the tasks that are prioritized for outsourcing are usually HR functions, including payroll, benefits management and recruitment. The rising popularity of outsourcing stems from perceived successes in reducing costs while improving operational efficiency and resource management.
This does not mean fewer opportunities for HR professionals because the jobs are shifted from the client company to the provider company. If your department is being outsourced, your first option is to find placement in another department within your company, or you could seek employment with the service provider. The recent Pulse Survey Report prepared by the Society for Human Resource Management indicated that HR professionals had high levels of confidence in their job security. However, older workers with deep resumes appeared to be more optimistic of their job prospects compared to younger workers who were anxious about finding and moving to another job.
How Technology Affects Job Security for HR Specialists
The use of tech-centered devices, apps and systems have made some tasks more efficient, reducing the hours and number of employees needed to complete the tasks. This is the case for the entire payroll processing system where automation of time records eliminated the need for manual entry and manipulation of data to generate the payroll. Payroll software suites provide dynamic databases for maintaining employee records and keeping these records updated and ready to retrieve at any time. The same apps generate reports with an analysis of trends and presentation of forecasts. Benefits and compensation reports may be processed in the same way.
Outlook for HR Jobs
In the Pulse survey mentioned above, fully 85 percent of younger HR professionals expressed confidence in human resources job security. Only 75 percent of older respondents indicated confidence that they felt their jobs were safe from downsizing and corporate realignment although they had greater confidence that they could find another job quickly. Majority of the respondents had no plans to seek other employment with only 19 percent admitting that they were seeking opportunities elsewhere, which indicates that job security for HR professionals is stable.
The growth outlook for the HR sector remains positive based on reports from the Bureau of Labor Statistics. Median pay will rise moderately while demand for HR jobs will grow by 5 percent between 2014 and 2024, which is about average compared to all other sectors. Clearly, human resources job security is not a myth in spite of the impact of outsourcing and technological advances.
