Entering 2022 brings new changes in how we work and who we work with. Many of the changes in the human resources sector have started prior to the pandemic, but as the pandemic entered its second year, employee well-being is no longer a benefit, but a must. The focus has shifted from improving organizational benefits to enhancing the individual and family life experiences of workers. In this article, we are going to talk about the top 10 newest HR trends in 2022.
1. Employee well-being is beneficial for retention
Raising salaries is one way to attract and retain employees, but the newest research shows that 62% of full-time workers identify well-being as a key factor in deciding whether to seek a new job. This is especially important when we are talking about Gen Z where 67% of interviewed people strongly agreed that well-being is a priority for them when evaluating a job offer. The HR function is switched to finding a way to contribute and improve employees' well-being as much as possible. Learn more about staff retention.
2. Support from employers becomes crucial
Over 80% of employees are looking for support and guidance from their employers on personal finance. Retirement, education, digital budgeting, financial planning, and access to financial advisors are just some of them. Another important field where employees are seeking support is mental health and resources. This shows us that HR leaders should move away from one-size-fits-all benefit solutions to a personal approach that will create a culture of care inside the organization. HR tasks are no longer just related to payroll processing, payroll taxes, and creating employee handbooks, but to supporting and nurturing their employees.
3. Hybrid work is in the demand
With the start of the pandemic, most companies were forced to adopt a “productivity anywhere” model. And according to the surveys, 83% of employees prefer it over the traditional. Workers regard freedom to work from anywhere, but employers need to ensure virtual collaboration, mentoring sessions and brainstorming even when working remotely. It's one of the goals of human resource management to help with the organization of hybrid workplaces and balance it with employees' well-being.
Work flexibility is one of the top HR trends for 2022 and the sooner the companies adopt it, the more successful they will be.
4. Matching values are important
75% of employees expect their company to lead by example and to be a force for good in society. More than half of workers claim they would quit their job if their company’s values are not aligned with theirs. Or they would not accept a job offer from a company that doesn’t match their values. Businesses should engage in listening to their employees and commit to more humane working conditions for employees. HR tasks are going to be shifted towards hiring employees that match their company's values.
5. Skills-based hiring
Artificial intelligence brings changes to the labor market and that brings changes to HR too. Certain jobs are automated and that creates new roles that require new skills. Glassdoor reports show that companies such as Apple, Hilton Hotels, and Google are offering well-paid jobs to those possessing in-demand skills, but lacking a degree. Skills-based hiring expands the talent pool and allows international employment opportunities. With physical distance not being a crucial factor in hiring, international hiring is here to stay. Many businesses are in pursuit of HR outsourcing services and PEO/EOR providers to help them expand their pool of talents.
Learn more about the Costs of hiring an employee in Europe.
6. The shift from people analytics to data literacy
One of the top strategic focuses of HR in the next few years is data. With the pandemic, employers had to rely on tools to gauge how engaged and productive their employees are. That is when the data became the new currency when we are talking about the workforce.
Data in HR practices:
- How successful HR is in adding value at the strategic level
- Allows HR to improve practices and the employee experience
- Enables HR to show how its various functions align with related strategies and demands
7. Working parents' expectations
Working parents are demanding a new deal from their employers since a number of school districts have postponed re-opening due to the Omicron variant of the virus. Research shows that many working parents are more likely to leave their jobs than their non-parent co-workers. HR leaders need to pay special attention to the unique needs of working parents. Companies need to shift their strategy and consider allowing more flexibility to their employees that are parents.
8. The CHRO role is changed forever
Since the pandemic has started, the list of issues facing CHROs ranges from leading with empathy to identifying various segments of workers and offering tailored solutions to improve their well-being. One of the newest HR trends for 2022 is for both HR and businesses to ask themselves a new set of questions about work and the workplace. Leaders in the new business world have to demonstrate empathy, transparency, and digital fluency.
9. DEI&B (Diversity, equity, inclusion & belonging)
Until recently, HR should think about DEI to create a work environment that helps people get the best out of themselves. But looks like that is not enough for workers in 2022. The need for belonging adds to the DEI equation. Belonging to the workplace helps employees feel safer and have real inclusion.
10. HR Design
The concept of design should be in focus over the coming years. This means that HR strategy should be focused on:
- Design of the new organization in the future
- Designing new jobs and new working practices
- Identify new capabilities and requirements
This shows that HR in the companies needs to clarify team boundaries, have flexible processes, and be fast to react to changes.
Key HRO Trends Takeaways
- Nearly 60% of employees prefer working remotely after the pandemic
- Human resource outsourcing becomes more popular because it expands the pool of talents for employers
- Technology adoption and deployment is one of the main trends in HR for 2022
- Two-thirds of employees value it when their opinion and feedback are heard
- HR supports the well-being and supports the mental health of employees
- Data becomes new currency and a core part of HR operations
- Recruiting skilled employees becomes a top priority among HR leaders
Interested to learn more about what a recruitment process looks like in Europe or what it means for your organization? Or you have been planning your European expansion? Feel free to get in contact with one of our HR experts.
About EuroDev
EuroDev, established in 1996 with offices in The Netherlands, has a single, defined purpose to help mid-sized North American companies expand their business in Europe. We have created a proven, successful business development model and since our founding, have partnered with over 300 companies to help them define and meet their European business goals. Services provided include Sales Outsourcing, HR Outsourcing, and Digital Marketing.
