According to Rajesh Rai, Vice President of - People Team and Head of Human Resources, India, GlobalLogic, HR 4.0 is strongly focused on flipping the pyramid - shifting away from executives and managers as the target audience of its efforts and pushing more toward the employee base.

The HR function has transformed into a vital part of the corporate environment.

It all started with HR 1.0, which originated in ancient China and continued until the twentieth century, wherein the personnel department was a highly administrative role.

Then, in the second half of the twentieth century, came HR 2.0 - the human resources department. HR was viewed as more strategic and vital to the business in this setting. In the early 2000s, it grew into HR 3.0, or the people team, which has a greater emphasis on employee experience, progress, and leaning forward.

As said by Rajesh Rai, “we are now on the verge of HR 4.0, which is the turning point of three major paradigm shifts in the world: the fourth industrial revolution with "smart everything," the Covid factor, which is causing us to rethink what we mean by the "workplace," and the rise of millennials and 
Generation Z in the workplace.”

Moreover, as businesses embark on their digital transformation path, the way of conducting business and providing assistance to workers and clients becomes new, wherein “HR 4.0 represents the subsequent advancement of our profession”. As a result of HR 4.0 automation, operations become more effective and efficient. It is closely related to the fourth industrial revolution or industry 4.0. Rajesh Rai argues that “the continuous innovation of technologies such as artificial intelligence (AI) and the internet of things (IoT), or the Metaverse, integrating new software operations into a company's regular business processes and providing an exceptional experience for employees will be easier than ever.”


So, how does HR 4.0 transforms organizations?

Based on Rajesh Rai, “HR 4.0 is playing an important role in defining and implementing socially sustainable solutions. It provides the needed stimuli to foster good social change, embrace new digital systems and practices, and pioneer sustainable organizational solutions, thus promoting the positive outcomes of Industry 4.0 and avoiding potential disadvantages.”

Therefore, with the fast transition that is occurring in today's digital world, HR 4.0 might be a crucial driver in enabling employees to emphasize and strive towards their job characteristics, boosting their work motivation and socially sustainable growth. Employees remain at the center of this approach, and their continuous response drives it as well.


What are the essential Human Resources techniques for the paradigm shift in work?

The pandemic has tested the limits on how organizations have traditionally operated.

Businesses are attempting to establish functioning models that enable employee well-being, assure business continuity, and create value by drawing on these experiences.

In a nutshell, “companies and businesses must give emphasis on developing key competencies and skills in order for them to deal with the fast-changing digital environment and address potential employee shortages. While skills create a workforce that is market-ready and relevant, care ensures that an employee, their family, and their work life are supported by compassion, trust, and a focus on their well-being. We are concentrating on the responses of the employee as a whole person, not simply as a resource, thus we are attempting to develop programs and tools that support their entire life experience rather than just what they accomplish at work” as stated by Rajesh Rai.


Key takeaways from Rajesh Rai that would be beneficial to CEOs as they rethink their company models and people strategies in the face of a rapidly changing work environment:

The pandemic has provided businesses with a once-in-a-lifetime chance to modify and redesign their strategy to do business and connect with their workforce.

As we embark on a journey into a highly connected and flexible future of work, leaders must prioritize knowing their employees. The comprehension will assist leaders in unlocking new systems that are more organic, adaptable, and human in nature. Young generations are the builders of the new evolving workplace, and they must have a part in shaping it.