The human resources agenda is being shaped by a number of factors, including shifts in the global economy and the labour market. As a result of the rapid pace of change, it is more important than ever for organizations to maintain a high level of awareness and foresight (Héder et al., 2018). HR departments’ responsibilities are shifting from administrative to strategic. Therefore, it is HR’s responsibility to keep an eye on the future and pave the way for divisions and the company as a whole to create a solid strategy and plan to help achieve goals no matter what obstacles may arise.

For instance considering how the labour market has evolved since the retirement age was eliminated in 2011, HR would have to take this into account and the fact that people could be working longer based on the nature of their role (Working after State Pension age, n.d.).  This has had a ripple effect on succession planning, pensions, and benefits, which could prompt ambitious workers to search elsewhere for employment. Hence, HR will need to implement a new strategy to ensure compliance with the rules and norms, which may result in a shift in the recruitment process, the recruitment agencies utilized, and retention strategies all of which could have a monetary impact (Héder et al., 2018).

On the other hand, globalization in HRM has necessitated the development of methods that can be applied to personnel both locally and internationally (Looise, & van, 2018). For example  If a company operates internationally, say in the UK and U.S and Asia, it  must ensure that its human resources practices are compliant with both local and international laws and are sensitive to employees’ cultural backgrounds. Therefore, globalization’s effect on HRM compels the field to reconsider its fundamental approaches (Looise, & van, 2018). The effects of globalization on human resource management are proportional to a country’s labour regulations. The minimum wage in the United States and Canada, for instance, are not the same. Likewise, there is a gulf between the compensation and benefit policies of Australia and China. Labour laws in each country, including Malaysia, India, the United Kingdom, and Hong Kong, will determine the minimum hours for working a week. Accordingly, multinational corporations should address these considerations when formulating HR policies (Looise, & van, 2018). The HR department must be well-versed in both national and international labour regulations as there may be serious legal repercussions for violating labour laws.