The document discusses the new economy and strategies for HR to navigate challenges in this environment. It defines the new economy as one driven by technology, services, knowledge and globalization. It emphasizes adopting innovative technologies to improve productivity and customer satisfaction. It recommends HR strategies like developing high-potential employees, implementing retention programs, training executives, outsourcing non-core functions, and embracing new technologies like cloud-based HR systems. Tips for preparing for changes include engaging remote employees, ongoing training and career discussions, and monitoring mental health.

1. The new HR
Function in the New
Economy
FREDERICK C BUSGANO
Discussant
Jo Bitonio
Professor

2. What is new economy?
Photo Attribution: https://www.forbes.com/sites/bernardmarr/2018/09/02/what-is-industry-4-0-heres-a-super-easy-explanation-for-anyone/?sh=2e0fbf3f9788

3. Photo Attribution: https://www.intechopen.com/chapters/80514

4. What is new economy?
• New Economy refers to industries that use
innovative and state-of-the-art technologies to
improve their efficiency, productivity, quality,
customer satisfaction, profitability, and nation’s
GDP.
• The term was coined during the late-1990s tech
bubble (which was sparked by the emergence of
the Internet and computers) that resulted in the
stock market crash.
• The service-based economy can deliver high-
value-added services because of the integration of
information technology, the Internet, skilled labor,
and long-term business structures.
• Factors like knowledge, change, and globalization
drives this economy. Increased rivalry, growth
prospects, market expansion, etc., are some of its
characteristics.

5. How New Economy Works?
New Economy definition signifies industries
adapting to changing technology and employing it
to achieve corporate objectives such as
productivity, quality, efficiency, customer
satisfaction, and profitability. The term was coined
during the late 1990s tech bubble (caused by the
introduction of the Internet and computers), which
ended in a massive stock market crash. It
represents the transition from a traditional
manufacturing and commodity-based economy to
a technology-enabled and service-based one.
The adoption of artificial intelligence, robotics,
decentralization of services, etc., marks the
emergence and evolution of the new economy. Its
fundamental components include the globalization
of corporate operations and connecting value
chains using innovative communication and
management technologies. It, thus, results in
better production for businesses and instant
delivery to customers.
Customers in such an economy have access to a transparent
market and knowledge that they did not have in the traditional,
classic economy. With that, it becomes easier for them to rely
on a brand. In addition, innovative technologies, skilled labor,
and sustainable business models enable the service-based
economy to deliver high-value-added services.

9. Strategies to be adopted by the new HR function to navigate
through the challenges of the new economy
• Establish growth and development
programs – Once you have recruited your
talent, develop programs that will help
increase their knowledge-skills. Encourage
them to “think-out-of-the-box” through
intensive training programs and seminars.
• Retention programs – “Superstars” are
naturally very high in demand; therefore, to
retain these talents, you’ll need to know
what motivates them to remain in your
company and how else you can empower
them to unleash their creativity.

10. Strategies to be adopted by the new HR function to navigate
through the challenges of the new economy
• Train senior executives – Senior executives
may tend to be more traditional in their ways.
They need to learn to manage these new
“superstars” and HR is in the best position to
conduct such trainings, bringing awareness to
the new change across all levels.
• Outsource non-core HR functions – HR
practitioners should start outsourcing non-core
administrative tasks. With that, HR is able to
focus more on strategic planning that could
help the company’s growth.

11. Strategies to be adopted by the new HR function to navigate
through the challenges of the new economy
.
• Embrace new technology – Take
initiatives to learn new ways to improve
your core functions by using tools such
as Google Apps for Work (G Suite), a
comprehensive suite that can help HR
perform their core functions in a
practical and efficient manner. This
includes functions such as Hiring,
Training and Development, Employee
Engagement, Performance
Management and Safety and
Compliance.

12. Tips To Prepare for Changes in the HR Realm
In a dynamic work environment, companies can never be prepared enough. Some
tips to strategize better for shifts in HR administration:
• Learning and developing efficient ways to engage employees at all times. The
traditional model of contacting employees sporadically doesn’t work, leading to a
lack of engagement and motivation for employees feeling isolated.
• For employees working remotely, daily “virtual water cooler and coffee pot”
conversations can allow them to check in and address their concerns. It provides
them with a “voice” and an opportunity to seek ideas and exchange suggestions.
• Training, development and career discussions make employees feel wanted and
suggest they have a future career with the organization.
• Checking in on employee mental health allows leadership to head off any major
issues an employee might be experiencing.

13. References:
• https://www.selecthub.com/hris/hr-trends/
• https://www.cdc.gov/workplacehealthpromotion/initiatives/resource
-center/case-studies/engage-employees-health-wellness.html
• https://www.wallstreetmojo.com/new-economy/#h-what-is-new-
economy
• https://www.forbes.com/sites/bernardmarr/2018/09/02/what-is-
industry-4-0-heres-a-super-easy-explanation-for-
anyone/?sh=2e0fbf3f9788
• https://www.intechopen.com/chapters/80514