Top 5 HR Trends In 2022

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In 2022, volatility will only rise due to the emergence of new Covid variations, a fierce talent battle, the Great Resignation, and the worst inflation levels in a generation.

As new variations continue to appear, it’s possible that offices will briefly become remote once more. Hybrid employment will increase the disparity between the hours, locations, and workloads of various employees.

As annual compensation increases lag behind inflation, many employees will experience actual wage reductions. On top of longer-term technology change, ongoing DE&I endeavours, ongoing political upheaval and instability will be the realities. So what are the HR trends companies should look out for in 2022? 

Here are the top 5 HR trends. 

#1 Hybrid offices

Gartner surveyed 127 firms in June 2020 to learn more about their strategies for post-COVID workplaces. According to the report, 47% of businesses will still permit remote work for their staff even after the pandemic. According to other businesses (43% of respondents), employees would be given the option of working remotely or on-site.

In that manner, the era of hybrid offices is rapidly arriving (or workplaces). One of the most popular HR trends for 2022 offers a flexible method of workplace organisation: various hybrid offices.

Partially remote – When a workforce is described as partially remote, it means that some employees work remotely while others are located on-site. It’s a common occurrence for businesses to be unable to relocate some of their functions to the remote due to hardware or security restrictions.

Flexible remote – Flexible remote working times or days allow staff members to manage their processes and spend some time away from the office.

Coworking – A workplace setup akin to coworking, but employees do not have assigned desks or work spaces. When they wish to work on-site, they reserve the workspaces in advance.

Companies are fundamentally revising their real estate strategies, rejecting long-term office leases, and making investments in buildings that will serve as their headquarters and prime locations.

HR

#2 Employee experience

With COVID-19, the employee experience notion has slightly evolved into a living experience which isn’t related to an office or physical presence with a team. 

According to a new McKinsey report, businesses will prioritise developing strong leadership and a culture of trust among their present employees and prospective hires in the labour market in 2022. 

These results shouldn’t come as a surprise since workers are looking for a stable and encouraging atmosphere during uncertain times. Companies will reevaluate their employee experiences, engagement strategies, and benefit plans among other HR trends in 2022.

Priority will be given to the welfare of employees and benefits that will simplify their daily lives. Employee interest in benefits like paid time off (52%), hospital indemnity insurance (48%), employee assistance programs (56%), and mental health support services is growing (51%), according to The Hartford’s Future of Benefits Study conducted in August 2020. 

Second, businesses will switch from offline to online interactions. The list includes mindfulness workshops, fitness and yoga classes, and Zoom-driven team development events.

Last but not least, future HR trends will include a move toward life experience and reward packages that are not directly related to the employer. For instance, Chanty, a firm that creates collaboration tools, gave each employee a $100 bonus to use towards celebration and gifts for their families.

Food delivery to employees’ homes so they don’t have to spend time cooking and grocery shopping is another 2020 trend that will continue in 2022. These kinds of bonuses show staff members that an organisation values them and stands by them in difficult circumstances.

#3 Upgrading of skills

Employee upskilling first appeared in the HR trends picture a while back. According to a recent Udemy survey, the need for upskilling will reach a staggering 38% in 2020. In contrast, this percentage was only 14% in 2019.

How did upskilling develop become one of the major themes in HR? Considering that it’s a sustainable and efficient method of training your personnel. Initiatives to improve skills aid HR professionals in retaining staff, boosting morale as well as lowering recruiting and onboarding expenses.

Companies had difficulties in the past year due to layoffs, an increase in sick days, and the move to remote work. Organisations will conduct upskilling programs to support their workforce’s continued competitiveness in the labour market to remain nimble and adjust to external market pressures. 

For instance, the consulting company PricewaterhouseCoopers (PwC) invested $3 billion in retraining staff members who had been with the business for at least three years. This is one of PwC’s most significant upskilling efforts, on a day-release basis.

#4 Data-driven analytics

Did you know that only 34% of HR executives base their decisions on data and metrics? It’s time to start making changes if one of your New Year’s plans for 2022 was to adopt a more data-driven approach to your people strategy.

The main forces behind people analytics, according to research from LinkedIn, are as follows:

  • The expansion of the CHRO’s function in business operations. HR executives must adopt a data-driven approach to evaluate the demand for workers now and in the future, skill shortages, workplace diversity, and other factors in order to maintain their competitiveness.
  • Technologies that improve the candidate experience include AI-powered chatbots, screening tools, and recruitment automation systems.
  • Market competition necessitates the development of long-term labour planning strategies by firms. HR executives can foresee the demand for knowledge and save learning and development expenditures by having a clear vision of what a firm will look like in 10 to 15 years.

#5 Diversity, equity and inclusion (DEI)

In 2020, there were 74% more search requests for information on workforce diversity insights than there were in 2019. Businesses are aware of how diverse teams contribute to business ideas, profitability, and team spirit. Companies with very varied staff actually reported up to 19% higher revenues than those with a low level of diversity.

We anticipate seeing the following HR trends connected to DEI in 2022:

  • Revised hiring approach – The first step in establishing a diverse workforce is hiring. HR managers can establish diverse teams by using popular recruitment strategies including AI-powered candidate screening, blind hiring processes, and diversity sourcing.
  • Initiatives in education – For instance, Starbucks started anti-bias education for staff members in the US and Canada to combat racial and ethnic prejudice. The business took these actions in response to the well-known Philadelphia incident in which two African Americans were arbitrarily detained at a Starbucks.
  • Accountability and analytics – Setting SMART diversity objectives, measuring HR efforts, and fostering an inclusive workplace will be achievable from the analytics. HR executives will be able to assess diversity ratios across the organisation and identify areas for development with the use of automated diversity tools and actionable data.

In conclusion, people are the most important elements in an organisation and hence it is crucial to ensure your employees are continuously provided with training opportunities, have a conducive environment to work in and great benefits so they can focus as well as be motivated to excel.

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