Top Four HR Trends for 2022 – Apply Them to the Work Environment and Enhance Employee Experience
The work environment has transformed dramatically over the last two years and while it might be almost impossible to tell the future – especially following the unexpected challenges of a global pandemic – there are still ways of predicting how the world of work will adapt and evolve over the next year. With a recent demand for an improved focus on employee well-being, rewards, hybrid working, diversity and inclusion efforts, these topics are bound to be incorporated within the key points that HR leaders will be addressing in the coming future. As we reach 2022, HR leaders will need to make practical steps as they face new challenges and priorities. We at Red Letter Days Corporate have collated a list of top HR trends for 2022. Make a start on the year and look ahead to the future of the work environment, adapting according to the demands of the modern workforce.
How Attitudes to Employee Benefits Have Evolved
The pandemic has motivated employers to put more effort and attention into their workforce with regards to the benefits they offer. The Hartford’s Future of Benefits Study conducted in August 2020 surveyed U.S. workers and human resources in March before the COVID-19 outbreak and then again in mid-June 2020. It found that because of the pandemic, an increased number of employers were likely to offer additional benefits that their company did not offer at the time. They hoped to align their plans, so they were closer to the desires of their workforce. It demonstrated a notable change and an increased employee interest in certain benefits. For example, employees valued perks like employee assistance programmes, which increased in demand from 38% in early March compared to 56% in mid-June 2020. Also, paid time off (PTO) increased from 31% to 52% while mental health services and wellness benefits both increased from 42% to 51%1. Companies began to offer improved benefits compared to the previous year.
According to research for the Robert Half Salary Guide, employees desire the benefits which are most frequently offered by employers. Some are mainstream, while others are more relevant to the ever-growing hybrid workforce. 57% of employees placed paid time off in their top three benefits, while 51% of survey respondents chose retirement savings plans. As for employee perks, 37% of respondents desire exclusive discounts on larger purchases such as, homes, cars and smartphones. Meanwhile, 27% selected paid parental leave and 24% selected company-subsidised meals2. This indicates that many employees wish to pursue both a successful career and a healthy family life and for those who work remotely, meal deliveries to their home or groceries for their weekly shop can be an excellent way to show appreciation to dedicated employees. This highlights the importance of a good work-life balance. Employees enjoy receiving discounts on the personal items that are of value to them. They want to spend more time enjoying the moments away from work and outside of the office. They want to receive rewards and recognition for their loyalty and hard work, even if they are working from home. There are several ways employers can reward their loyal and hardworking employees, from long-service awards to performance incentives. We at Red Letter Days Corporate can provide exceptional solutions with experiences that employees can enjoy outside of their daily working routine. Inspiring a motivated workforce is an excellent first step and can lead to a bright future of success.
The Challenges and Benefits of Hybrid Working
In June 2020, Gartner conducted a survey among 127 company leaders to discuss what their plans were towards post-pandemic workplaces. The survey revealed that going forward, 47% of companies would allow their employees to work remotely full time. Meanwhile, 43% of respondents said they would introduce flexible days and 42% would provide flexible hours, allowing employees to choose between remote or on-site work3. According to LinkedIn’s study into the Future of Work 2021, nine out of 10 (86%) professionals believed hybrid working was essential for achieving a good work-life balance. When asked why they responded this way, 48% of professionals suggested that a hybrid model would allow them to spend an equal amount of time on their personal aspirations and professional lives4. Despite this, for several companies with employees working both on-site and remotely, this will mean the challenge of adapting to a more complex hybrid workforce. A critical issue to consider is the productivity of remote employees. Some businesses have tackled this by introducing more frequent check-ins between the manager and their employee. In fact, 61% of business leaders surveyed by Gartner have implemented this5.
The Importance of Diversity and Inclusion Initiatives
As was the case in 2021, many companies are supporting diversity in the workplace which creates an attractive employee experience and offers the company a competitive advantage. By promoting a diverse and inclusive work environment, companies become more flexible, inspiring and are often able to attract a larger pool of talented, prospective employees. According to Global Diversity Practice, companies that are gender, age and ethnically diverse make better decisions up to 87% of the time6. Workplaces that are inclusive adopt improved employee well-being that ultimately has commercial benefits. On the other hand, a lack of diversity and inclusion initiatives can result in poor employee retention and high turnover rates. A study of individuals who have experienced workplace bias revealed that 33% felt alienated, 34% withheld their ideas and solutions and 80% would not refer people to their employer7. By valuing diversity, workplaces can create a positive employee culture and increase employee satisfaction, whilst also instilling a sense of accomplishment. A survey completed by 3,000 working Australians indicated that employees in inclusive teams are two times as likely to receive regular career development and 10 times more likely to be successful8.
The Rise in Employee Upskilling
The total number of skills required for a single job increases annually at 6.3% and new skills are replacing old ones. 29% of the skills that were present in an average job posting in 2018 will be obsolete by 20229. According to Udemy’s 2021 Workplace Trends report, the demand for upskilling went up from 14% in 2019 to 38% in 202010. Employers are beginning to recognise the value of upskilling their employees which will inspire their competitiveness and result in improved employee retention. This will also keep recruitment costs down and as a long-term solution, focuses on the development of internal talent. Employers will begin the recruitment process with a plan to reskill or upskill talented employees over a longer period. This will mean that the workforce is equipped to respond, develop and evolve accordingly.
How to Adapt to the Demands of an Ever-changing Workforce
After two years of being at the forefront of innovative employee solutions and initiatives and dealing with the challenges of the pandemic, whilst also leading employees as they return to the workplace, HR leaders and professionals face the demands of another year. It is important to stay on top of current trends and ensure employee well-being is maintained whilst also valuing the importance of rewards and recognition for dedicated and hardworking employees. Red Letter Days Corporate have highlighted key points to assist in the execution of an effective plan in line with the latest trends.
Key Points to Take Away