A featured contribution from Leadership Perspectives: a curated forum reserved for leaders nominated by our subscribers and vetted by the Manage HR Advisory Board.



My current role is Head of Human Capital at PT Asuransi Etiqa Internasional Indonesia, where I oversee all aspects of managing people within the company. I have over 25 years of experience in Human Capital, particularly in the financial industry, and I also hold a coaching certification from ICF.
The Evolving Role of HR in Modern Organizations
HR has evolved from a transactional and administrative role to that of a business strategic partner. HR is now actively involved in strategic organizational decision-making. We are increasingly taking proactive steps with strategic initiatives related to employee productivity, retention, employer branding, attracting candidates and ensuring organizational design effectiveness. Several factors influence this shift:
1. Technology/Digitalization and the Use of Data in Decision-Making: Technology has transformed how HR and the organization work. By utilizing technology, many tasks have become more efficient and faster. For example, employee data is now captured through applications, with candidates filling out forms automatically uploaded to the HR system. Paper usage is minimized, and approvals and submissions are made through email or applications.
2. Diversity, Equality, and Inclusion (DEI): As more Gen Z individuals enter the workforce, we see a cultural shift in organizations. HR's role is crucial in bridging generational differences. Additionally, there is now a trend of corporations accepting candidates with disabilities, which further emphasizes HR's role in bridging gaps and ensuring inclusivity.
3. Business Competition: Today, HR professionals are being invited to sit in business meetings to provide advice related to people. This is driven by a growing awareness of the critical role HR plays, as every business decision ultimately impacts people. As a result, there is a demand for HR professionals to understand business processes more deeply.
Promoting Diversity, Equity, and Inclusion (DEI)
Each year, we conduct an employee engagement survey to gather our employees' feedback. We also hold quarterly town halls, where we provide updates on company performance and open the floor for a Q&A session with the Board of Directors (BoD). Our employee policies emphasize DEI, ensuring our recruitment and performance management processes focus on the capabilities and performance of candidates and employees, in alignment with regulations. This approach ensures that we offer opportunities to those who meet the requirements.
Trends in Employee Benefits and Perks
In addition to traditional benefits such as professional development, medical insurance and learning opportunities, there has been a growing focus on employee mental health and wellness. Employers are offering access to programs that support employees' mental health, such as counseling, parenting skills, fitness memberships, financial management consultancy and parental leave.
The COVID-19 pandemic has also accelerated the trend toward remote, hybrid work and flexible working hours. However, we are now seeing a shift in some companies moving toward a full return to office work. For companies adopting flexible working arrangements (FWA), clear policies must be implemented to prevent abuse of flexibility and address the unexpected rise in working hours that some employees experience while working from home. While FWA supports work-life balance, it can also lead to unclear working hours, presenting a dilemma for employers.
"HR must prioritize mental health, offer flexible schedules and train managers to recognize signs of burnout"
The Role of Emotional Intelligence in HR
Emotional intelligence (EI) is crucial in HR, particularly in leadership selection and employee relations. EI enhances leaders' ability to understand and manage their emotions while also recognizing and influencing the emotions of others. In leadership and employee interactions, EI is vital for building trust, fostering collaboration and resolving conflicts. By integrating EI into HR practices, organizations can foster a more empathetic, collaborative and resilient work environment. Emotionally intelligent leaders can build strong relationships, increase employee satisfaction and drive organizational success. Ultimately, incorporating EI into leadership and employee relations contributes to a supportive work environment, enhancing retention, productivity and morale.
Future Workforce Trends Impacting HR Practices
Workforce trends are reshaping HR practices, driven by technology, demographic shifts and evolving employee needs. Key trends include:
1. Remote & Hybrid Work: HR must adapt by implementing flexible policies, investing in remote collaboration tools and focusing on virtual onboarding and performance reviews based on outcomes.
2. AI & Automation: AI will streamline HR tasks such as recruiting and payroll, enabling HR to focus on more strategic roles. It's crucial to train HR teams on how to use AI effectively.
3. Employee Well-Being: HR must prioritize mental health, offer flexible schedules and train managers to recognize signs of burnout.
4. Diversity & Inclusion: Inclusive hiring practices and creating a culture of belonging remain essential. HR should measure DEI progress and mentor underrepresented groups.
5. Continuous Learning: HR must support ongoing employee development with accessible learning programs and career growth opportunities.
6. Gig Economy: Policies for managing contract workers will be essential, ensuring fair treatment and benefits.
7. Data-Driven HR: Leveraging analytics for recruitment and employee engagement decisions will be key.
8. Generational Shifts: HR must cater to Millennials and Gen Z, emphasizing purpose-driven work and career flexibility.
For HR professionals seeking advancement, it is important to build a strong knowledge base, master data-driven decision-making, understand business strategy, network with peers and continuously seek feedback to improve.