The top 5 trends in human resource management for 2022
Dr. Evangelo Damigos; PhD | Head of Digital Futures Research Desk
- Competitive Differentiation
Publication | Update: Nov 2022
In 2021, the global human resource management market size was estimated at USD 19.38 billion and is forecast to grow at a compound annual growth rate (CAGR) of 12.8 percent from 2022 to 2030. The increasing automation and digitization of HR activities to create flexible and efficient pathways is expected to boost the market demand during the forecast period. The development may also depend on the efforts made by companies to attract the appropriate applicant pool, manage resources effectively and retain human capital. These human resource management solutions have the potential to increase and improve workflows at HR, thus driving the market.[1]
1. The Transition from Employee Well-being to Healthy Organization
In recent years, employee mental health and wellbeing have received the attention they deserve in the workplace. In the 2021 sentiment survey by HR, more than 68 percent of senior managers at HR ranked employee wellbeing and mental health as a key priority. Given the shock, frustration and uncertainty that followed the pandemic, the Healthy Organization takes a holistic and more comprehensive approach to wellbeing across the institution. This approach goes beyond the physical health and safety of the workforce and seeks to provide more training and empowerment opportunities. The Healthy Organization framework includes the following elements:
· Physical Health
· Mental Well-being
· Financial Fitness
· Social Health and Community Service
· Safe Workplace
· Healthy Culture
In the face of a deadly pandemic that has affected workers and the workplace, it stands to reason that a Healthy Organization would be a welcome trend to improve productivity and employee satisfaction, leading to higher employee retention.[1]
1. Hybrid Work
Hybrid work will continue to exist in the future. According to the Accenture Future of Work Study 2021, which surveyed more than 9,000 workers from around the world, the majority of respondents want a hybrid work model, where they sometimes work remotely and other times locally. 83 percent of workers prefer a hybrid work style, and 63 percent of high-growth companies have already adopted a "productivity anywhere" model for their employees, according to a survey by Accenture.[2] Gartner surveyed 127 business leaders from HR, legal and compliance, finance and real estate in June 2020 to find out how they envision the workplace after Covid. Even after pandemics, 47 percent of employers will allow their employees to work remotely, the report found. Other companies (43%) will introduce flexible working hours and allow their employees to choose between remote and on-site work.[3]
Figure 2: Company leader intentions regarding flexible working after COVID-19. Gartner, Inc. (2020, July). Gartner survey reveals 82% of company leaders plan to allow employees to work remotely some of the time. Retrieved from: https://www.gartner.com/en/newsroom/press-releases/2020-07-14-gartner-survey-reveals-82-percent-of-company-leaders-plan-to-allow-employees-to-work-remotely-some-of-the-time
The hybrid office is one of the hottest HR trends for 2022 and offers a flexible approach to workplace organization:
· Partially remote means that part of the workforce works remotely while others operate on-site. This is a common situation for companies that cannot move certain functions to the cloud due to security or hardware constraints.
· Flexible remote hours or days that allow employees to manage their workload and spend some of their time remotely.
· An office organization similar to coworking, where employees do not have a designated desk or workspace. Once they have decided to work on site, they reserve workspaces in advance.
Companies are rejecting long-term office leases and investing in spaces that serve as headquarters and prime locations. Hubspot, for example, a provider of sales and marketing tools, has offered its employees three options: @home, @office, and @flex. Starting in January 2022, employees have the option to work mostly from home, commute to the office three or more days a week, or have a mixed work schedule. This programme will reinforce Hubspot's location-independent strategy and promote employee wellness.[1]
1. AI in Employee Management
Artificial intelligence will have a significant impact on talent retention and employee satisfaction in 2022.It will enable HR departments to optimize the overall employee experience and provide more customized training solutions and plans to their employees. The use of AI will help HR 's teams and experts make better decisions to improve the employee experience. In addition, in 2022, HR teams will continue to use AI chatbots to support people management. A new communication channel where employees can discuss HR-related issues, such as payroll, employee benefits and more. They can also complete repetitive tasks in seconds.
2. Corporate Sustainability
More than ever, job seekers are looking for organizations with environmental initiatives. Therefore, companies need to evolve and become more sustainable, not only environmentally, but also socially and ethically. Adopting sustainable practices in the workplace will improve talent retention and brand image, as well as attract more job seekers. Adopting these important HR trends for 2022 will increase a company's attractiveness to customers. Most importantly, knowing that they work for a sustainable company will make its employees happy and motivated.[2]
3. Introduce DEI into the Workplace Culture
The most important trend confronting HR is performative DEI work. Once a knee-jerk reaction to discrimination in the workplace, companies are increasingly paying attention to diversity, equality, inclusion and belonging. DEI is the common thread that runs through companies as they seek to retain current and potential employees for the long term. With companies losing billions in discrimination lawsuits, absenteeism, lost productivity and high turnover rates, they are now willing to spend millions to minimize racial bias and implement strategic plans to promote racial equality and inclusion in the workplace.[1]
[1] Grand View Research, Inc. (n.d.). Human Resource Management Market Size Report, 2030. Retrieved from: https://www.grandviewresearch.com/industry-analysis/human-resource-management-hrm-market
[2] Dixit, R. (n.d.). HR Trends for 2022: Future of Human Resource Management. SelectHub. Retrieved from: https://www.selecthub.com/hris/hr-trends/
[3] Accenture. (2021, April). The future of work: A hybrid work model. Retrieved from: https://www.accenture.com/us-en/insights/consulting/future-work
[4] Gartner, Inc. (2020, July). Gartner survey reveals 82% of company leaders plan to allow employees to work remotely some of the time. Retrieved from: https://www.gartner.com/en/newsroom/press-releases/2020-07-14-gartner-survey-reveals-82-percent-of-company-leaders-plan-to-allow-employees-to-work-remotely-some-of-the-time
[5] Chorna, I. (2022, August). Top 5 HR trends for 2022 and beyond. HRForecast. Retrieved from: https://hrforecast.com/top-5-hr-trends-for-2021-and-beyond/
[6] Factorialblog. (2022, May). Top 11 Emerging HR Trends in 2022 That You Should be Aware Of. Retrieved from: https://factorialhr.co.uk/blog/hr-trends-2022/
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The degree of necessity. Luxury products and habit forming ones, typically have a higher elasticity.
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