HR News & Trends: July Week 1

1. Market

i. Top Banks Hire More AI Talent

The Evident AI Talent Report revealed that the world’s biggest banks now employ over 112,000 AI-related roles despite an overall hiring decline of 23%. Based on the report, 10,000 new AI roles were added, and 17,836 AI-related job postings were published between Q4 2023 and Q1 2024. JPMorgan Chase and Capital One lead in AI talent acquisition, followed by European banks like Deutsche Bank, Santander, Barclays, HSBC, and BNP Paribas. The report outlines four key areas for AI talent development:

• Long-term planning
• Group-wide onboarding for technical talent
• Upskilling leaders and users
• Balancing centralised and decentralised training.

ii. Japan Raises Pay by 5.1%, the Largest Increment in 33 Years

Japanese companies have implemented the largest wage hikes in three decades, driven by labour shortages and inflation. Monthly pay increased by an average of 5.1% this year, with large firms raising wages by 5.19% and small firms by 4.45%. This wage growth is crucial for Japan’s economic recovery. The Bank of Japan’s decision to end negative interest rates and yield curve control followed these wage increases. However, small firms still struggle to pass on costs and improve profit margins. Efforts are ongoing to stabilise prices and increase minimum hourly pay to 1,500 yen by the mid-2030s.

Read the full article about wage hikes in Japan.

iii. Greece Introduces a Six-Day Work Week

Greece introduced a six-day working week, allowing employers to extend work hours from 40 to 48 per week. This change, intended to address labour shortages and a shrinking population, is optional and excludes tourism and hospitality. Workers in eligible sectors can work an additional two hours per day or an extra eight-hour shift with extra pay. The legislation, part of broader labour reforms by Prime Minister Kyriakos Mitsotakis, aims to curb undeclared work and unpaid overtime while aligning Greece with other European countries. However, the move has faced strong opposition from unions, who argue it undermines workers’ rights.

Read the full article about Greece’s six-day workweek.

2. Business Moves

i. Tencent to Include 13th Month Bonus and Housing Subsidies in Monthly Pay

Tencent announced a salary structure adjustment involving the inclusion of the 13th-month bonus and housing subsidies into the monthly salary. This change aims to provide employees with a more stable cash flow and address concerns about income reduction after housing subsidies expire. Some of the key changes include.

Read the full Chinese article about Tencent’s salary structure adjustment.

ii. Renowned Chinese Tech Giant Phases Out the HRBP Role

Chinese tech giant Youzan has decided to phase out its HRBP (Human Resource Business Partner) roles. Affected employees will be directed to business-focused positions and engage in actual business work instead of HR tasks. This shift is part of an effort to enhance efficiency using advanced tools and streamlined processes. The decision has received mixed reactions: while some employees applaud the change, others see it as a cost-cutting move driven by financial struggles. Critics argue that removing HRBPs might reduce attention to employee welfare and organisational health. This move highlights the difference in HR practices between Chinese and foreign companies, where in, practice, HRBPs in major Chinese companies often wield significant authority, sometimes more than their intended support roles.

Read the full Chinese article about Youzan’s removal of the HRBP role.

iii. Father of Modern HR Updates HRBP Model

The global landscape has changed since David Ulrich, the father of modern HR, shaped the HRBP model. In light of the turbulent environment of the past few years, including COVID-19, economic uncertainty, technological innovations, and global disruptions, key updates were made to the HRBP model:

• People and Organisation: The focus on managing people and organisations has become central to business success, with HR issues now integral to business discussions.
• Strategic Success: HR’s role has shifted from an internal focus to delivering value to all stakeholders, further emphasising the human element.
• Human Capability: The HR field has evolved to emphasise human capability, combining talent, leadership, organisation, and HR functions to deliver marketplace value.
  • Talent: Evolved to pay attention to work tasks and meaningful employee engagement.
  • Organisation: Emphasis on capability ecosystems over individual contributions.
  • Leadership: Focus on front-line leaders and emerging competencies.
• AI-Enabled HR: Technological innovations, particularly AI, have significantly impacted HR, enhancing efficiency and access to information.
• HR Analytics: Shift from benchmarking to providing actionable guidance based on data analysis.
• HR Competencies: Transition from static competencies to dynamic actions (verbs) that HR professionals can take to create value.

The focus on human capability to deliver stakeholder value will likely grow in importance over the next seven years.

Read Ulrich’s full post about the updated HRBP model.