HR Trends for 2022
A trend is defined as: ‘Something that is hip or popular at a certain time.’
When you mention ‘trends’, fashion is often the first thing that comes to mind. But today, we’d like to get in early and identify our predictions for HR trends in 2022!
2021 will go down in history as one of the most disruptive years to the workforce. What’s more, the repercussions are still being felt to this day – remote models are now a ‘new norm’, and digital meetings have become a necessary workplace tool.
But will these changes continue into the new year?
Read on as we investigate the latest in HR trends and pinpoint the new HR developments business owners need to be aware of heading into the uncertainty of a covid-normal world.
In this blog post I’ll cover 4 Key HR Trends for 2022:
The Hybrid Working Model
Addressing Mental Health
Understanding younger employees
A continuous Performance Management approach
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Trend #1: The Hybrid Working Model
If there’s one thing that’s certain going into 2022, it’s that remote working is here to stay.
Remodelling offices and adapting flexible workplace models has been a key focus for many businesses during the past two years. And it’s safe to say that this will be an ongoing trend for 2022, and for many years to come.
A review taken by the Australian Productivity Commission found that over the past 2 years, the percentage of employees who work from home has increased from 8 per cent to 40 per cent, the percentage staying high even outside of lockdowns. It’s predicted that moving forward, many businesses will take on the ‘Hybrid Work Model’ approach where workers will negotiate mutually beneficial working arrangements that split their time between the office and home.
“A Hybrid Work Model is a workforce plan that integrates both in-office and remote work into an employee’s schedule.”
For the modern-day employee, remote working has opened up a world of possibilities and offers a lifestyle never seen before. The flexibility for family life is endless, and many are claiming they are more productive while being away from the busy office.
Working from home is not for everyone though, with culture growth and idea generation both being limited by isolated remote working.
The trick is in finding the balance to ensure employee expectations are met, and business operations are at maximum efficiency. How this looks will differ for every company and may need to be an arrangement that alters over time.
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Key takeaway
Remote working is here to stay and 2022 will see a focus on balancing both remote and office work to suit all employees.
What do I need to do?
Business owners should start to think about setting flexible working guidelines/policies to suit business operations and meet employee expectations.
Trend #2: Addressing Mental Health will be a ‘MUST HAVE’ rather then a "‘NICE TO HAVE’ benefit
The last two years has compounded feelings of stress, grief and anxiety amongst employees, leaving emotional scars that cannot be ignored in the workplace.
In 2022, employers may see this manifest into decreases in productivity, employee engagement and overall performance. The way in which HR respond to this imminent mental health crisis will heavily impact the culture and engagement of staff leading into the new year.
The direction forward?
The future of HR will experience a new type of role – The Director of Wellbeing.
A key element of this trend will be the use of ‘Employee Assistance Programs (EAP)’, which are transitioning from a ‘nice to have’ to ‘must have’ in terms of people management. The focus of these programs is to provide a health and wellbeing resource to employees that gives support when it’s needed most.
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Key takeaway
Managing Employee Mental Health will be at the forefront of HR priorities, and employee expectations, in 2022.
What do I need to do?
Proactively monitor employee mental health and develop a wellness program to ensure your team have the support they need.
Trend #3: Understanding Younger Employees
Extending beyond next year, there will be an increased need for employers to understand their younger employees.
Whilst Baby Boomers, Gen X and Millennials take up more than half the employees today, there is now an increase in Gen Z workers (born between 1997 and 2012) that are entering the workforce. With this new generation, comes a change in values and career priorities that employers need to be aware of.
For example, a common trend surfacing is that younger workers tend to rely more heavily on their bosses/mentors to help with both personal and professional development.
This will not only affect work processes, but also recruitment and retention practices for younger employees.
Millennials and Gen Z workers are looking for more than ‘just a job’ and are motivated by more than just financial reward. Not to say salary and bonuses will no longer be important, however businesses need to understand how priorities are shifting towards career progression, training and development, work/life balance and value assimilation.
HR will have a big role to play in helping to make this transition and relish how these new workers will contribute to the workforce.
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Key takeaway
The next year will see companies pay more attention to the next generation of workers, who have different priorities and work styles that need to be considered.
What do I need to do?
Review your hiring and employee engagement processes to ensure they caterfor a Gen Z workforce.
Trend #4: A Continuous Performance Management Approach
Performance Management is an important aspect of people management, however unless done correctly, it can be difficult to pull out the insights and constructive feedback desired.
In fact, I’ve seen lots of review processes handled poorly, where they leave employees wondering:
‘Are you judging me, or coaching me?’
‘I wish I would’ve known this earlier.’
‘I have no idea what to do with this.’
As a result, 2022 will see a trend where HR/employers focus more on frequent 1-on-1 formal reviews, replacing the old school annual review.
These regular reviews will be used as a productivity measure, including analysing communication, work/life behaviour and collaboration to give a holistic performance measurement. This style also compliments the new hybrid way of working and change in work processes.
In fact, the desire for these reviews goes both ways.
Employees are craving this instant feedback on their performance, as it helps them to further their career development and growth much more efficiently. For employers, this level of performance management builds a culture of open communication and collaboration that allows all parties to speak their mind in a safe environment.
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Key takeaway
Leading into 2022, employees are wanting feedback – and now!
What do I need to do?
Assess your current performance management system and see if there’s room to increase frequency of reviews.
What will 2022 bring for small and medium businesses?
Only time will tell.
We can be sure however, that these trends will impact the way we work and interact with employees. By preparing for these changes and learning how your business will adapt, you can start the new year on the right foot and launch into 2022 with confidence.
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Nathan Morihovitis is a Full-Time HR Consultant with Melbourne HR
Edited by Nicole Torrington, Marketing Manager at Melbourne HR.