The evolution of HR and next steps

The essential function that is human resource management (HR) has undergone significant transformation in T&T over the decades, evolving from rudimentary personnel management practices to a more sophisticated, strategic function that plays a critical role in organisational success.  
Simplified to six phases, the following shall attempt to highlight HRs role in shaping business practices and workforce management throughout the shifts in our country’s economic, social, and political landscapes 
 

1. Colonial era to early Independence (pre-1960s)

Personnel management in an emerging economy: Before the nation gained Independence in 1962, its economic activities were heavily centred on agriculture and extractive industries, particularly sugar and oil. The labour market during the colonial period was largely stratified by class and race, with British expatriates occupying managerial roles while the local workforce, primarily descendants of enslaved Africans and indentured labourers, filled lower-level positions. 

Personnel management during this era was rudimentary, focusing primarily on labour relations, compliance with colonial labour laws, and the enforcement of rigid, hierarchical workplace structures.

In a 2004 paper, George Maharaj noted that early personnel practices were more concerned with maintaining control over the labour force than with fostering employee development or well-being. 

Following Independence, there was a gradual shift toward more formalised HR practices as multinational companies entered the market, particularly in the oil and gas sectors. These companies brought with them international personnel management standards, including formalised recruitment processes and basic employee benefits. 
 

2. 1970s: Rise of industrial relations

The 1970s marked a significant period of change for HR in T&T, driven largely by the Black Power movement and protracted labour unrest. Workers demanded better wages, working conditions, and representation, leading to the proliferation of trade unions and a stronger focus on industrial relations (IR). The Industrial Relations Act (IRA) of 1972 remains a landmark legislation that sought to regulate employer-employee relations, giving unions greater power to negotiate on behalf of workers. 

During this period, HR departments became more formalised as companies were required to comply with new labour laws and formally engage with unions. The emphasis was on collective bargaining, conflict resolution, and ensuring compliance with labour legislation.
In a 2011 paper, Dr Roger Hosein, an economist at the University of the West Indies (UWI), noted the rise of trade unions and industrial relations had a lasting impact on HR, shaping how companies managed their workforce, especially in large industries such as oil, manufacturing, and public services. 
 

3. 1980s-1990s: Professionalisation of human resources

By the 1980s and 1990s, the national HR function began to take on a more professional and strategic role within organisations. The establishment of the Employers’ Consultative Association (ECA) in 1960, and later the Human Resource Management Association of T&T (HRMATT) in 1989, were pivotal in the professionalisation of HR. HRMATT, in particular, provided a platform for HR professionals to exchange knowledge, develop best practices, and advocate for the advancement of the HR profession. 

The increasing presence of multinational corporations during the 1990s also contributed to the evolution of HR. These companies introduced global HR practices, such as merit-based performance management systems, talent development programmes, and formalised recruitment strategies which all influenced local businesses. This period also saw the implementation of HR information systems (HRIS), which automated many administrative tasks and allowed HR professionals to focus on more strategic activities. 

According to former HRMATT president Patricia Ghany, the shift during this period was significant, as HR professionals began to move away from administrative functions towards being partners in organisational development. This was also a time when HR professionals started taking a more active role in leadership development and organisational strategy, reflecting global HR trends. 
 

4. 2000s: Focus on employee engagement/talent management

The 2000s brought about further transformation in HR, driven by a greater focus on employee engagement, talent management, and organisational culture. The country’s economic boom, fuelled by the energy sector, led to a highly competitive labour market, particularly for skilled professionals. As a result, HR departments began to place a stronger emphasis on employee retention, learning and development, and succession planning. 

HR professionals were tasked with creating attractive compensation and benefits packages, fostering positive workplace cultures, and ensuring that employees remained engaged and productive. In addition, organisations began to adopt more structured performance management systems, linking employee performance to business objectives. The growing influence of global HR trends, such as the use of key performance indicators (KPIs) and employee engagement surveys, shaped how HR departments operated during this time. 
 

5. 2010s: HR role in navigating economic challenges

The 2010s presented a challenging economic environment for T&T, with declining oil prices influencing a deepening recession in 2015. As companies faced financial constraints, HR departments were tasked with making difficult decisions regarding layoffs, cost-cutting measures, and restructuring. This period underscored the need for HR to be agile and responsive to changing economic conditions. 

During this period, HR in T&T also began to place greater emphasis on diversity, equity, and inclusion (DEI) initiatives. According to a 2018 report by the UWI’s Institute for Gender and Development Studies, many companies recognised the need to create more inclusive work environments, particularly as global companies operating in T&T implemented DEI programmes. 
 

6. 2020s: Impact of COVID-19 and future of HR

The COVID-19 pandemic dramatically altered the HR landscape in T&T, as it did globally. The sudden pivot to remote work, along with the need to implement new health and safety protocols, placed HR firmly at the forefront of managing the crisis.
The pandemic also accelerated the current focus on employee well-being, mental health, and flexible work arrangements. HR professionals were tasked with supporting employees through uncertain times, ensuring business continuity while also fostering a positive work culture in a remote environment. The subsequent rise of hybrid work models, greater use of HR analytics, and an increased emphasis on employee experience are trends that are expected to continue shaping the immediate future of HR in T&T. 

Next Steps: 

The future of Human Resources (HR) in T&T is being shaped by several trends influenced by global dynamics, technological advancements, and the specific socio-economic context of the Caribbean region.  

1. Digital transformation and HR technology:  Digital tools, including HR information systems (HRIS), artificial intelligence (AI), and cloud-based solutions, are revolutionising how HR operates. Companies are increasingly adopting HR technology for recruitment, performance management, and employee engagement. This shift is driving efficiency and data-driven decision-making in HR processes.
    
2. Emphasis on employee experience: With growing awareness of employee well-being and engagement, there is a shift toward enhancing the overall employee experience. This includes creating inclusive work environments, offering flexible work arrangements, and providing career development opportunities. As the national workforce becomes more diverse, HR departments are focusing on practices that support employee satisfaction and retention.
3. Remote and hybrid work models: The COVID-19 pandemic accelerated the adoption of remote and hybrid work models locally. HR professionals must now manage the complexities of remote work, including employee engagement, monitoring productivity, and ensuring compliance with labour laws in a remote setting. Companies are rethinking office spaces, and the HR function is evolving to support remote workforce management. 
4. Talent acquisition and workforce development: Our HR sector is experiencing challenges related to talent acquisition, particularly in industries requiring specialised skills such as IT, finance, and engineering. The labour market is also influenced by regional and global competition for top talent. HR professionals are increasingly focusing on reskilling and upskilling their existing workforce to address skill gaps and future-proof their organisations. 
   The TTCIC emphasised in 2023 the importance of investing in continuous learning and development programs to close the skills gap, particularly in digital and technical fields. 
5. Compliance with evolving labour laws: Changes in national labour laws and employment regulations are an ongoing focus for HR. The country is constantly reviewing its labour legislation to meet international standards and improve employee rights. HR departments must stay informed and compliant with these changes, including those related to minimum wage adjustments, working conditions, and occupational safety. 
   The Ministry of Labour has been actively updating labour laws in line with the ILO standards, particularly around decent work and fair treatment of employees. In 2022, they announced plans to enhance worker protections in the gig economy, a growing sector in the country.
    
6. Diversity, Equity, and Inclusion (DEI): Local organisations are becoming more conscious of diversity and inclusion. HR teams are focusing on creating equitable workplaces that value diverse perspectives and promote inclusion across all levels. Gender equality, cultural diversity, and anti-discrimination policies are gaining prominence in corporate strategies. 
   A study by the University of the West Indies in 2023 indicated that while DEI practices are improving, there is still significant work to be done to close the gender pay gap and promote inclusion in leadership roles in T&T’s corporate sector. 
7. Sustainability & Corporate Social Responsibility (CSR)
   HR is playing a central role in promoting sustainability and CSR initiatives within organisations. This includes aligning HR policies with environmental goals, encouraging volunteerism, and supporting community-based initiatives. Younger generations are particularly drawn to employers with strong CSR values, making this a critical focus for future HR strategies. 
   HR is now at a pivotal point, influenced by global and local developments. Digital transformation, workforce diversity, employee experience, and the evolution of labour laws are reshaping the HR landscape. For HR professionals, the future will involve not only managing traditional HR tasks but also contributing strategically to business goals, particularly in areas like talent management, corporate sustainability, and workforce development.