The field of human resource management is now changing faster than ever, and we are in the front row of one of the most exciting transformations in business. Let's find out new trends in Human Resource management in 2022!

Evolution of HR: what has changed?

The pandemic has caused significant changes in HR management. These changes reflect on relationships with employees, the business environment, schedules (remote and hybrid work), and staff mobility. In addition, companies began to think about cost optimization. Also, HR trends were influenced by people's attitudes to their health: its value for both employees and managers has grown even among those who did not consider this issue a priority.

All these facts require HR managers to meet future trends and challenges in HR management and adjust to the changing environment.

Top trends in HR management

Knowing new trends in HR is not about today, it’s the key to predicting HR trends for the future. Learn the main fundamental shifts in the HR field:

Trend 1. Focus on employee well-being

79% of employees are convinced their company's well-being programs helped them be as productive as possible (Statista)

The well-being program is a modern method of personnel retention, designed to increase the level of well-being of employees, as well as their involvement in the work process. The last two years have exhausted employees, so most companies have begun to implement or revise their well-being programs.

Examples of well-being programs: healthy lunch and snacks, fitness activities, smoking cessation initiatives, yoga classes, health screenings, corporate book clubs, etc.

Special tools have appeared that help to introduce the well-being concept in the organization, to understand how well the employees are, what they lack and how to keep them. For example, special surveys or the launch of chats with a discussion of various topics.

Trend 2. Hybrid work schedule

87% of people want to work from home at least 1 day of the week (The Pulse of the American Worker Survey)

Hybrid work has become among the leaders of the latest trends in HR. During the pandemic, many employees realized that they needed more flexible schedules and working hours after the lockdown too. Many companies have already developed processes for managing remote teams, so they are not opposed to introducing a hybrid mode of operation. For example, the “3-2-2” mode implies that employees will go to the office only three days a week and work remotely two more. This mode will allow employees not to sacrifice personal life for the sake of a career.

Trend 3. Remote interactive onboarding

Great employee onboarding can enhance employee retention by 82% (Brandon Hall Group)

Recruiting and adaptation of a new employee should be fast, as comfortable as possible, and create only positive impressions about the company. Now many people work remotely, and the onboarding process should be built in accordance with the requirements of the time. There are a number of available recruitment tools and special platforms on which you can organize the entire process.

For example, Hubspot developed a comprehensive remote onboarding system by introducing remote work guides for managers and newcomers, integrating case study assessments into the onboarding experience, and tracking live participation via completion data in its education platform. Also, the company encouraged staff to have their Zoom camera “on” to boost a sense of belonging and active participation.

Trend 4. Talent marketplaces

35% of employees will leave their jobs each year to go work somewhere else (Work Institute)

The latest trend in HR of 2022 is the distribution of talent through the so-called "marketplaces". In other words, "talent marketplaces" help to find and connect with employees within the same company or in different areas with internal career opportunities. These can be vacancies in the partner companies, cross-functional projects, temporary assignments, business trips, and other interaction options. Such opportunities are cool options to engage employees and retain them.

Trend 5. Internal recruitment

Internal hiring is 6x more effective than all other hiring sources (ThriveMyWay)

More and more companies are looking for and hiring specialists within the company. More efforts will be directed to the cultivation of their talents and the formation of a personnel reserve. Therefore, more and more efforts will be invested in the development of methods for assessing employees, developing competencies, and assessing competencies.

Trend 6. Motivating rewards and incentive programs

More than 42% of employees pay attention to rewards and incentives program opportunities (TeamStage)

The value proposition of the employer has changed. Companies must do more to stand out and create an attractive employer brand. Moreover, long-term incentives have lost much of their appeal. Instead, there is more focus on flexibility, employee support, and creating goals for employees.

Employers also need to consider how they can implement inclusive benefits and rewards and support employee well-being and mental health, which can lead to rethinking and reviewing their compensation policies.

For example, increasing base salaries to attract talent (Target, Bank of America, etc.), offering free mobile apps for building emotional resilience, and improving sleep habits (EY). etc.

Trend 7. Data analytics 

Near 44% of talent managers look for cloud solutions to increase efficiency and productivity (PwC)

One of the key weaknesses and a bad trend in global HR is the general literacy when working with data and the ability to manage this data. For example, HR business partners need to better understand all the data in order to effectively implement the results of HR behavioral analysis in their organizations.

HR managers need to be able to access dashboards and extract the necessary data to develop effective recommendations. Also, HR analysts will be more effective when their analysis is accompanied by business data and financial indicators.

This is not to say that HR professionals should become experts in data collection. Despite the need for different data formats, data should be organized in such a way that managers spend more time applying them in practice than studying complex graphs. Thus, the added value of HR professionals lies in transforming insights into action so that the data is used correctly and effectively.

Trend 8. Transition from DEI to DEI&B

In a diverse workforce, performance improves by 12% and an employee’s engagement by 20% (Gartner)

Diversity, equity, and inclusion (DEI) were among the trends in global HR in recent years. Now, it remains so but the new component occurs - belonging (DEI&B). Companies realized that DEI is not enough for the employees to feel valued and work efficiently. People want to feel that they belong to the company and the company’s mission, and make changes. Diversity, equity, inclusion, and belonging work together to drive the innovation, creativity, and dynamics of the teams. 

Trend 9. HR and recruitment processes automation 

Over 98% of fortune 500 companies use recruitment software (Webinar Care)

One of the HR industry trends that are actively gaining popularity is the automation of processes by means of recruitment software. For example, modern recruitment platforms and solutions allow you to automate the process of posting vacancies, selecting candidates and recruiting, etc. Using such recruitment tools saves not only time but also money for the company.

For example, Axterior is a recruitment management software that minimizes recruiter involvement in the candidate search process and saves valuable time for strategy development. Axterior makes both managers’ and employees’ experiences simpler and more efficient. The implementation of this technology does not require a lot of time and resources, and the return is noticeable from the first days of use.

Advice for Getting Ready for Changes in the HR World

We hope that you’ll consider all the mentioned HR industry trends to improve your HR management. However, as 2020 has shown, trends and demands can change dramatically due to unforeseen circumstances. Therefore, we recommend you to be flexible enough and integrate different digital tools to quickly navigate situations and take appropriate actions and decisions to continue to work effectively.

Conclusion

Trends in HR management are evolving all the time. To meet the needs of tomorrow, in 2022 HR managers need to look for new ways to work and manage teams allowing them to respond flexibly to changing priorities. This is where HR technologies are crucial. Do not miss the opportunity to develop your business even faster!