HR Trends for 2022: What Employers Need to Know About Current HR Trends

While 2021 was a year of reinventing HR and solidifying its new role, 2022 is going to be all about pushing the boundaries of how HR can add value. In this blog post we’ll review HR Trends for 2022: What Employers Need to Know About Current HR Trends.

Nothing has changed more in the past two years than the way we work, and how companies operate. And it is no surprise that no other business department has been under more pressure to keep up with this fast pace of change than Human Resources. 

From the initial shift towards the full remote work setting, the numerous lockdowns, and health concerns, to the Great Reopening (only to be swiftly followed by the Great Resignation and talent shortages), the disruption to our economies and to every organization has been continuous rather than episodic.

That’s why it is even more crucial to be aware of these current HR trends and understand how to leverage them to drive change and add more business value in 2022 and beyond.

Trend #1: High Turnover Rates Will Continue

Nearly 55% of HR leaders say turnover is higher than it was before the pandemic – and they don’t expect that will change anytime soon, according to MindEdge’s second annual HR in the Age of Workplace Uncertainty survey.

What’s worse, most leaders also say hiring remotely and onboarding is more difficult than in the office. On the upside, most leaders in the MindEdge’s survey agree remote interviewing is just as effective as in-person interviewing.

So for now, HR leaders will want to accept that some degree of recruiting, interviewing, hiring and onboarding will remain remote.

HR Focus for 2022

• HR will need to double down on efforts towards talent acquisition and retention in 2022, creating an employer brand and work environment that is attractive to both existing and new employees.
• Put an emphasis on remote, online interviews. You might let team members sit in on later-stage virtual interviews. If you can’t do that, invite them to submit questions for all candidate interviews.

Trend #2: Employee Mental Health and Resilience

In 2022, mental health and resilience will no longer just be buzzwords. Companies will be forced to invest real money in uplifting employee well-being and ensuring that they stay resilient and confident in the face of new challenges and opportunities. This will, indeed, be a key area of importance for HR to address.

HR Focus for 2022

• Build a climate of psychological safety. Create a culture where everyone feels safe to voice their opinion regarding work and career-related conversations without risk of reprimand.
• Craft policies for stress mitigation. Policies such as employee assistance programs and flexi-work where employees can take a day off for a breather are some of the ways HR can explore to foster well-being and resilience.

Trend #3: Employee Engagement Focus

Most experts agree remote work is here to stay among the 2022 workplace trends. And most HR leaders and front-line managers agree it presents a new set of issues for keeping employees engaged.

Employees may continue to feel isolated. They’ll likely find collaboration less effective as when they work together on-site. And without daily interaction with the boss, they might not get the feedback they need. 

HR Focus for 2022

• Managers need to think out of the box when it comes to employee appreciation. Employee appreciation can take many forms, including compensation, team recognition, learning and development opportunities.
• Dive deeper into the meaning of employee engagement and what it means to your organization.

Trend #4: HR Will Become Decentralized

The typically centralized HR function must give way to a “hyper-local model” where HR can outsource the last-mile connectivity with each and every employee via the managers. This can apply to different elements of the HR function — from strategy and policy-making, to events and engagement.

HR Focus for 2022

• Abandon the mindset that managers can and must have all the answers. Managers need to be hired, trained, and promoted with the mindset that they do not need to know all the answers.
• Empower managers with the right technology tools and data. They should be able to leverage digital channels to survey employees, provide feedback, analyze data, communicate/collaborate remotely, and make decisions.

Trend #5: Diversity & Inclusion Will Become a Major Competitive Differentiator

According to McKinsey, companies in the top 25% for gender diversity in leadership were 25% more likely to have above-average profitability than their bottom-quartile counterparts. Unfortunately, many organizations are yet to fully invest in diversity & inclusion (D&I) as a key cultural as well as operational tenet.

HR Focus for 2022

• Communicate the D&I agenda to all layers of your organization. Using data-based insights and a clearly communicated plan will ensure timely buy-in and appropriate execution.
• Lead by example when it comes to D&I. Actively incorporate D&I into manager selection and training to address gender equality in leadership roles.

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