Over the past two decades, the human resources management function has undergone a profound transformation—from administrative support to a strategic business partner. Today, HR is key to the long-term sustainability, competitiveness, and innovativeness of organizations, but it would not have such a role without several global and local trends. Below, we present which trends these are and how they have contributed to the development of the HR function.
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The emergence of new analytics tools
In the early 2000s, the first digitalization in HR began with the implementation of basic information systems for personnel records. The real turning point came with the emergence of specialized HRIS systems, digital onboarding, and e-learning, which enabled a self-service approach for employees. The Employer Partner certificate followed this transition from the very beginning. Organizations striving for excellence had to invest in digital solutions, transparent processes, and the employee user experience. Many Employer Partner certificate holders were among the first to introduce integrated HR systems, digitalize onboarding and training, and use HR analytics for strategic decision-making.
Today, in the third wave of digitalization, HR is introducing AI tools and using predictive models and advanced analytics, positioning itself as an equal partner to the business. HR no longer operates based on intuition, but uses data to monitor and optimize all processes—from recruitment to employee development and performance management. Advanced analytics enable the identification of trends, measurement of the impact of development initiatives, and the linking of HR activities with business results, giving HR a strategic role within the organization.
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The development of employer branding
Ten years ago, employer branding in the Croatian market was understood as recruitment marketing. It was focused on attracting candidates through job advertisements, appearances at career fairs, and the creation of the first career websites. The focus was short-term and primarily operational. With new challenges that organizations face in talent acquisition, a transition began from superficial communication to sustainable and authentic employer branding, strongly connected to organizational culture and employee experience.
Today, most excellent employers create candidate personas based on market and data analysis, develop an EVP (Employee Value Proposition) from real values and behaviors within the organization, and use employees as ambassadors who share their own authentic experiences. In this process, HR is no longer a passive implementer of marketing campaigns, but becomes a key bearer of organizational culture and identity—integrating them into every phase of the employer branding strategy. Employer Partner standards help organizations develop a credible and long-term sustainable employer story—one that does not begin with a job advertisement, but with the values their employees live every day.
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Focus on employee experience, benefits, and well-being
Material and non-material reward systems have been monitored through Employer Partner since 2012, when the importance of flexible work arrangements and benefits was recognized as a key part of the employee experience. At that time, excellent employers offered an average of around 10 benefits, mostly oriented toward tax-exempt rewards (holiday bonuses, vacation allowances), additional vacation days, medical check-ups, and supplementary health insurance. Interestingly, at that time company mobile phones were also part of the benefits package, whereas today they are considered standard office equipment necessary for performing the job.
The COVID pandemic significantly accelerated these changes in the Croatian market, and such benefits began to be introduced in almost all larger organizations. Major changes were also brought by new generations of employees, Millennials and Gen Z, who no longer seek only security and salary from work, but also purpose, balance, flexibility, and care for well-being.
Today, for excellent employers, working from home for part or all employees is standard, and there is also a visible trend of increasingly providing free or co-financed psychological support for employees, as well as a series of training programs such as Future Resilience, which help employees manage stress and preserve mental health. Benefits are no longer just a list of add-ons; they are a reflection of organizational culture. The role of the Employer Partner certificate is therefore to encourage organizations not to offer benefits merely because the market expects them, but because they truly understand human needs in the modern work environment.
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Talent management and continuous development
In the past, the term “talent” was reserved for a small number of “key” high-potential employees, whereas today it is recognized that everyone can have talents that contribute to the organization. Organizations were mostly focused on traditional forms of education—trainings and workshops—and over time, more and more organizations have recognized the importance of a broader approach to personal and professional development, while technological development has further influenced the democratization of learning through online education.
Today we talk about personalized, data-driven development, tailored to the real needs of employees and the organization. The most advanced organizations are built as learning organizations—environments that encourage continuous learning, knowledge sharing, and adaptability. In such an environment, development is not a separate function, but an integral part of everyday work and culture. Employee development is no longer a privilege of the selected few, but a systematic and personalized strategy for everyone. HR designs continuous learning systems, introduces mentoring, coaching, and digital platforms for competency development. The focus is on reskilling and upskilling, so that employees and organizations are prepared for future challenges. Instead of counting participants, organizations holding the Employer Partner certificate focus on impact, observing how development has actually contributed to business results, engagement, and talent retention.
These trends are also aligned with current employee needs, as shown by last year’s climate and engagement surveys, according to which the most important predictors of engagement are purposefulness of work, opportunities for learning and development, employee well-being in the workplace, innovation, opportunities for advancement, and the leadership competencies of direct managers.
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Sustainability, inclusiveness, and change management
Real change and a more systematic approach to sustainability in the business sector began in the 2000s, when companies started introducing CSR as part of business strategy, rather than only through philanthropy and donations. A key moment was the adoption of the Sustainable Development Strategy of the Republic of Croatia in 2009, which set a national framework for economic and social development and environmental protection according to sustainability principles. At the end of 2004, the First National Conference on CSR (Agenda 2005) was held, marking a turning point in defining priorities and guidelines for the development of socially responsible business in Croatia. Research from the 2000s shows that larger companies began earlier to develop CSR departments and invest in sustainability projects, while small and medium-sized enterprises lagged behind, often using sustainability more as a marketing tool than as a genuine business practice.
Today, most organizations know that business sustainability does not depend only on financial stability and environmental practices, but also on the organization’s ability to continuously develop people, encourage innovation, and build an inclusive culture. Through its processes, HR directly contributes to this sustainability, and the Employer Partner certificate shows that successful organizations strategically develop employees, foster a learning culture, ensure fairness and inclusiveness, and manage change in a way that strengthens long-term business sustainability.
It is crucial that HR, in cooperation with business leaders, clearly defines future competencies—those that will be essential for the success of business strategies in the context of digital transformation, automation, and changes in the labor market. Furthermore, managing innovation through structured processes must include creating a culture that encourages creativity, experimentation, and interdisciplinary collaboration. Innovation does not happen by accident, and HR plays a key role in building reward systems, training programs, and work structures that enable employees to develop and implement new ideas. This fosters competitiveness, efficiency, and the ability to respond quickly to change.
By integrating reskilling, upskilling, innovation, and DEI policies into the HR strategy, organizations not only strengthen their adaptability, but also become employers of choice. This ensures sustainable business operations in an increasingly dynamic and demanding market environment.
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The first standardization of HR in Croatia
The Employer Partner certificate was launched in 2005 with the aim of recognizing quality in human resources management. In the first ten years of the project, 198 certification processes were conducted in four countries, while today this number exceeds 2000 and includes all industries across the entire region. The initial application of Employer Partner standards initiated the professionalization and standardization of HR practices in Croatia, enabling the accelerated development of the HR community and employers. The standards for awarding the certificate were developed through cooperation between SELECTIO experts, executive directors, and HR managers of the most successful companies in Croatia, and in order to remain aligned with global best practices, the standards are revised every four years. For the first time, measurable standards enabled organizations to compare their HR practices with competitors and assess themselves against the best standards on the market. Such comparison continues to encourage companies to develop and improve their human resources management processes, which consequently leads to raising the overall standard of HR practice in the local and regional market.
At the same time, the digitalization and automation of routine HR tasks freed HR professionals for strategic activities. Over the past twenty years, HR departments have transitioned from paper-based forms to sophisticated digital solutions that enable more efficient management of employee data, automation of administrative processes, and generation of reports needed for decision-making. Companies holding the Employer Partner certificate show a greater tendency to track key HR metrics and use such data for strategic decision-making. This includes monitoring recruitment costs, employee retention, performance, and development initiatives.
What is expected of HR today?
Thanks to these trends, HR has become a strategic architect of organizational culture, development, and innovation. Organizations that have recognized and implemented these changes not only attract and retain top talent, but also actively build their competitiveness and resilience in the market. Today, HR is expected to have a strategic understanding of the business, collaborate with other functions, and actively participate in defining and implementing business strategy. Key competencies of modern HR include financial literacy, business planning, change management, and effective communication.
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