If one were to describe the state of HR in Brazil over the past ten years in one word, that word would be “evolution”. Like many other countries in the Latin American region, HR in Brazil had historically been a generalist profession. HR processes were locally driven, documentation on employees, their experiences, expertise and growth were scarce, and not all processes were widely available. Between MNCs and local industries, development certainly took place, but at a varied pace.
The evolution of HR in Brazil was well underway before the emergence of the pandemic, but the country has witnessed significant growth since it began its course. Today, HR has become a real partner to businesses, helping them to cope with market trends and new business needs.
The South American nation of Brazil occupies half the continent’s landmass and is the fifth largest country in the world. One may know the county for the Amazon River, a wide range of tropical and subtropical landscapes, its vibrant traditions, its coffee, and their reverence for football. Brazil is one of the world giants of mining, agriculture, and manufacturing.
Today, Brazil has a rapidly growing service sector. In fact, formal job growths in the service sector topped 1 million in May of 2021, marking the strongest pace of growth since 2010. The Brazilian economy is rising, and more importantly, the sectors that were hit really hard before, like services, are now leading the way.
High growth trends, coupled with the needs of businesses in a pandemic-stricken economy demands a fresh perspective in HR management. This blog will explore the ways in which HR has evolved since the emergence of Covid-19 and how it has transformed its processes. Here are the top 8 maravilhoso HR trends in Brazil.
Top 8 maravilhoso HR trends in Brazil
1. Remote work is the new setting
Remote work came suddenly, but it is now here to stay. The technological progress in HR has made this transition simple and smooth. But notably, the Covid-19 pandemic accelerated the progress that was already underway in the Brazilian economy.
2. Collaboration is top priority for remote companies
The pandemic posed new and complex problems to organizations around the world, including in Brazil. This calls for a diverse team of specialists to come up with innovative solutions. The sudden shift to remote work in 2020 persuaded leaders to quickly prioritise solutions that enabled remote teams to collaborate effectively. Businesses quickly realised that remote work wasn’t going away any time soon, and in order to succeed in that environment, teams had to really develop their skills at business communication and listening.
3. The era of HR technologies is here
HR technology industries are the third most active startup industries in Brazil, after fintechs and mobility. Currently, there are 373 startups active in the HR space, of which 85.2% were founded less than a decade ago. Among these HR tech startups, a majority are focused on areas like talent management & development, recruitment, and HR core processes.
4. Adoption of digital onboarding solutions
The Covid-19 outbreak has been one of the main agents of change within HR departments in Brazil. This led to an acceleration in the adoption of digital onboarding solutions. With social distancing measures in place, digital onboarding solutions have made the management of documents and processes smooth and efficient. Process that may have once take a month on average have gained speed with HR tech platforms.
5. Lack of solutions focused on off boarding
An unfortunate trend, however, is the lack of off-boarding solutions. Layoffs during the pandemic are, unfortunately, a common phenomenon. At a time when layoffs are on the rise, there has been a lack of solutions focused on managing the departure of employees from companies. Companies and HR need to divert their resources towards the off-boarding process and need to ensure that it’s a less painful procedure.
6. The need for recruitment technologies
Recruitment companies account for 28.2% of the total number of HR techs in Brazil. It should be noted that recruitment and selection through artificial intelligence, which were already growing before the pandemic, took a leap in 2020. Therefore, Brazilian companies were well on their way to seeing the importance of having more robust recruitment tools to find the best professionals for open positions.
7. The surge of e-learning and hybrid tech teams
E-learning tools surged by more than 60% in Brazil. In the spirit of agile project management and hybrid work culture, technical teams are moving away from single domain expertise. Roles are becoming hybrid, too. Leaders are encouraging employees to build expertise in more than one subject related to their job function. As companies continue to emphasise hybrid roles, HR can expect to see a surge in demand for related skill development and training.
8. Reduced office footprint
A study by SHRM on how HR leaders in Brazil are leveraging the disruption caused by the pandemic revealed that 52% of leaders expected a reduced office footprint in the long term. The office will continue to be a strategic asset to organization, where they will optimize workplace design to increase employee collaboration. The future of the workplace will be focused on balancing employee mobility with collaboration.
Leveraging peopleHum for the future of work
With companies already climbing the road towards digitization, it an excellent time to embrace processes that can enable them to become more efficient in their processes. peopleHum's one-view integrated workforce management system is a platform for the complete employee experience, from hiring to off-boarding.
Enable your employees to communicate, collaborate, and focus on resilience and productivity through a unique approach focused on experience design. All for a value equation for the Brazilian market priced in Brazilian real that is hard to beat.
No wonder a plethora of companies of all sizes and partners, integrators and consultants are flocking to peopleHum to drive the future of cloud based human capital platforms in markets like Brazil.
Reach out to us to hear our story and how we can help your organization align and transform into the organization of the future.