As we turn the corner to 2020, companies are taking stock of their achievements over the last year—have targets been met? How do they measure up to the competition? And as the new world of work continues its dizzying transformation, what must be revamped to adapt to today's modern workforce? How does this all contribute to the company's bottom line?

Increased job growth, decreased unemployment and slow workforce growth have come together, giving employees the upper hand to select for whom they will work and for how long. In response, organizations of all shapes and sizes are putting people first and rethinking the way they work. HR personnel grapple with ways to ignite company culture and reinvent processes and policies to connect with their employees and meet the wishlists of the younger generations.

Research data from the people management experts at Hibob revealed a lack of confidence in HR in today's modern workplace. Among workers, 48 percent expressed indifference about the role of HR at their company, and 18 percent believe that HR takes away from their overall work experience. While three out of four thought corporate culture is extremely important, 70 percent of the respondents said HR can do a better job of fostering it.

Today's companies must arm HR teams with the necessary tools to improve employee experience, build loyalty and retain talent. Here are 2020's leading workplace trends to help you on your quest:

1. Create a greater sense of community

As modern workplaces increasingly adopt open floor plans and co-working spaces gain popularity, expect the 2020 workplace to embrace a greater sense of community. The shift away from long corridors with individual offices to a communal set-up creates an environment that is more social than ever before. Being in close proximity introduces constant face-to-face interaction.

Beyond the physical workplace, our rapidly advancing communication technologies reinforce the community, by increasing collaboration and boosting cohesion across global teams. Social media platforms are used by companies to promote internal communication and employee engagement, and virtual meeting software ensures constant accessibility.

2. Employee benefits: Adding cultural perks to the mix

Data from Deloitte's Millennial Survey (2018) shows that millennials and Generation Z prioritize financial rewards, followed by positive workplace culture, flexible hours and location, opportunities for continuous learning and well-being programs and incentives.

This new year continues in its holistic approach to the workplace, offering a range of perks that go beyond traditional benefits such as healthcare. Offerings such as flexible work schedules, gym memberships, extended maternity/paternity leave, pets in the office, etc… will enhance the workplace culture. Perks like these are likely already offered at other companies, so incorporating attractive benefits has become a necessity to remain competitive.

3. Essential skill sets: Superior tech skills & valuable interpersonal skills

To meet the ever-growing increase in automation and robotics, workplaces must sharpen their tech competencies to meet technological demands and stay ahead of the competition. This also gives your people the opportunity to develop and fulfill personal aspirations, which means they are less likely to stagnate and lose interest in their jobs.

Additionally, the workplace of the future recognizes the value of EQ, emotional intelligence that impacts every workplace interaction– collaboration, teamwork, and client relations, to name a few. Coaching leaders on their communication skills will promote a positive workplace culture that avoids toxic behavior.

4. Taking company culture one step further

The quitting economy is upon us, as quitting statistics are up for the eighth consecutive year (Work Institute 2018 Retention Report). Today's talent is quick to jump ship, and companies are hemorrhaging cash to replace them.

It's been said that people don't quit managers or companies, they quit organizational culture. While companies acknowledge the importance of cultivating a strong company culture through company-wide mission and values, the new twist in 2020 will be the birth of a tribe culture that is distinctive to each group, where managers establish unique micro-cultures that arm teams with a stronger sense of belonging. Building loyalty and camaraderie among teams is more likely to impact retention than lofty high-level statements that are hard for some to identify with.

5. Workplace diversity greater than ever

Today's workplace boasts a wider cross-generational representation than ever before, as Gen Z, Millennials, Gen X, and Boomers all work hand-in-hand. Teams are staffed with diverse individuals of varying ages and backgrounds, who all bring something unique to the table.

Generational diversity can present conflicting perspectives and cultural challenges, and HR pros must help managers inspire cooperation and synergy among talent with different skill and experience levels. The new year will see an increased emphasis on culture-building activities with the goal of eliminating company cliques based on age.

An additional facet of workplace diversity is geographic, as companies take advantage of collaborative technologies to broaden their footprint to other locations. We are experiencing a workplace consumerization trend, whereby companies take a cue from disruptive technologies like Amazon and Uber, and offering more remote and freelance opportunities which mean teams no longer sit side-by-side in the office. HR leaders must invest in new strategies to engage remote employees and create a culture that is inclusive to every employee, regardless of where they work.

This year will be another demanding one for HR, as workplace culture climbs to an all-time high on companies' list of priorities. Dispersed and diverse teams, flexible work schedules and work/life balance are trends many have encountered in the recent past. HR teams and managers are likely to see more of these in the coming year, with hurdles surrounding team-building and collaboration to increase workplace productivity.

Record low unemployment and rapid churn mean companies must invest greatly in building their culture, to win the talent war by creating an irresistible environment where people want to work.

Ronni Zehavi is CEO and co-founder at Hibob.

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