These past years have seen a reshaping of the human resources management industry in many ways. The year 2022 will see HRM adding value to the changes it has seen in recent years, by embracing a flexible work structure and a holistic approach to employee well-being. What are you looking forward to in HR software? What are the key things to watch out for? This article will provide insight into the HR trends that can be expected in the industry and how they could impact work, worker, and workplace.
The Key Takeaways
- Flexible work models can help reduce the attrition of top talent by up to 20%
- Companies are moving away from focusing on the individual well-being of employees to a holistic approach for a healthy organization.
- For a post-pandemic company to be successful, employee expectations go beyond just pay and benefits. Employees need to feel connected, have meaningful interactions, and have a sense that they are valued.
- Companies are increasingly focusing their efforts on power skills, also known as social, emotional, and advanced cognitive abilities.
- By 2023, 52% of the workforce will either have worked independently or will be contributing to the gig economy.
Top 5 HR Trends for 2022
2020 was a year that caused panic in industries and forced them into change. 2021, however, was a year for restoring balance through informed strategies as we deal with the effects of the global COVID-19 pandemic.
Companies were always learning, unlearning, and strategizing for tomorrow.
It is essential for any industry to understand these changes annually in order to keep up with the rapid development, especially given the recent pandemic. We’ve consulted experts and industry leaders to help you make informed decisions about HR for your organization.
1. Model of Hybrid Work
The hybrid work model is a better option for employees and productivity as the economy recovers. This flexible, employee-centric work model includes remote and in-office work.
Sundar Pichai (Google’s CEO) announced the hybrid work plan in May 2021. This allowed employees to work remotely for two days and work from their office three days per week. Pichai stated that flexibility is the future of work. Other companies that have embraced hybrid work include Hubspot and Microsoft, Infosys Siemens, Amazon, Hubspot and Microsoft.
2. The transition from employee well-being to a healthy organisation
In the past few years, employee mental well-being and wellbeing has finally been given its due attention at work. In the 2021 HR Sentiment survey, 68% of HR managers rated employee mental and physical health as their top priority. With the uncertainty, shock and frustration that followed the pandemic, what can we expect on this front?
This concept is not only about the safety and health of employees, but also aims to provide more opportunities and flexibility for employees’ training and empowerment. These are the elements of the Healthy Organisation Framework:
- Physical Health
- Mental Well-being
- Financial Fitness
- Social Health and Community Service
- Safe Workplace
- A Healthy Culture
After a devastating pandemic which ravaged the workplace, it is safe to say that a Healthy Organisation would be a welcomed trend to improve productivity and employee satisfaction. This will lead to better employee retention.
3. DEI in the Spotlight
For a long time, diversity, equity, and inclusion have been popular words in many organisations. In order to address bias, discrimination and harassment at work, DEI initiatives are an important part of the solution. With the evolution of work models, from in-person to virtual and mixed environments, DEI is more important than ever.
According to Traliant’s report, 79% of respondents plan to increase the DEI budget by 2022. However, money alone is not enough to solve the root causes of problems. It is also noted that only 13% senior executives actively support DEI initiatives. This highlights the need to develop more DEI leaders in order to effect positive changes in workplace culture and behaviour.
These measures can be used by companies to increase DEI in 2022, according to SHRM’s partnership with Harvard Business Review Analytic Service.
- Establish a hotline to report DEI incidents and a warmline to receive advice and coaching.
- Employer resource groups and networks can be used to their full potential.
- Diversify hiring panels.
- Establish a DEI steering group.
- Sponsorship and membership opportunities available
- Remind yourself to be aware of unconscious biases.
4. The Key Role of Power Skills
As the workplace evolves, so do its needs. To maintain productivity in a virtual workplace, employees need more than technical skills. Employers are looking for people with power skills to hire new employees. Employers prefer to hire people with transferable skills, such as teamwork, time management and leadership. They also train them for the technical aspects of the job.
The power skills are behavioral in nature. Technical skills are possible with technological advancements. But it is the power skills that make an employee stand out and take the effort. Steven Cates lists the most important power skills that recruiters seek as leadership, teamwork and communication.
Dave Millner is the founder and consulting partner at HRM Curator. He believes power skills are essential for effective operation management in a changing world. These skills are essential for effective operation management in a disruptive world. Therefore, leaders and managers with them should be top priorities. There must be opportunities to develop these skills. These are his reasons for the growing importance of power skills.
Preservation: Robots cannot duplicate behavioural and power skills. Therefore, power skills can be used to protect jobs.
Leadership performance is as important as delivering results or business intelligence. Performance: Engaging talent and inspiring others has as big an impact as leadership performance.
Communication is essential: It’s more important than ever to communicate with colleagues and peers with different work patterns (hybrids, remote workers, office workers). Leaders and managers must have the ability to communicate with their employees. However, they also need to use these skills more often.
Workplace Environment: Employees feel more connected when they work in a positive environment that encourages learning and enjoyment.
Customers: Customers are more likely than processes to purchase people, and it all comes down to the customer’s attitude and behavior.
The rising demand for power skills will make 2022 an exciting year. It will also be a year of innovation and creativity that will help employees improve their skills at work.
5. Embracing the Gig Economy
The gig economy isn’t a new concept. This term was first used in 2009 to describe a new workforce trend that relied upon free-floating projects and consultancies, as well as part-time jobs in a digital marketplace. The gig economy concept dates back to the 1900s, when businesses allowed temporary workers to fill the gaps in the workforce.
The gig economy graph is on the rise thanks to recent events and a variety of opportunities for workers learning new skills. According to a report, 86.5 million Americans will freelancing in the U.S. by 2027. This will account for 50.9% of all U.S. workers. This is due to:
Workers can have a greater degree of flexibility through the gig economy. Due to the disruptions caused by the pandemic more full-time workers are turning to gig opportunities because of necessity.
Businesses that depend on gig workers have a cost advantage because they can hire full-time employees to take up gig opportunities.
We expect that 2022 will embrace gig economy, with policies and plans to retain gig workers and increase cost efficiency. It will be interesting to see what measures companies will take to protect and benefit freelancers.