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10Apr 2022

key hr trends

key focus areas for hr

2021 was the year of transforming HR and strengthening its new role; 2022 will be all about expanding the horizons. As life is full of changes, 2022 is the year for HR to cruise the transformation waves caused due to the pandemic.


So, what can be the key focus areas for HR in 2022? And how should HR prepare for them? From saying goodbye to the work from home to saying hello to the new candidates, here are the key focus areas for HR in the upcoming year. Let’s learn about them further.


Increased internal mobility and changes in the hiring procedure


Instead of hiring fresh talents, why not promote the employees within the organization? You’re giving your loyal employees to progress further and boost overall productivity.


As per LinkedIn Global Talent Trends 2020, internal mobility improves retention and boosts new hire productivity and the hiring process.


However, 2022 could be the year where internal mobility can hit the peak level! Since the pandemic has started, companies have focused on upskilling their employees and promoting deserving candidates to higher job positions.


Companies that believe in internal mobility have experienced better employee retention rates than organizations focusing on hiring fresh talent.


As a result, both HR budgets and recruitments budgets are in danger of getting chopped by the leaders. As per some official reports, 30% of HR leaders plan to decrease their HR spendings, but cutting the HR expenditure is still doubtful.


Managing workforce of different generations


It’s time for HR to understand that commencing work from the office desks isn’t like a family reunion. HR has to deal with five different generations at the workplace under one roof.


So how will HR manage the workforce of different generations simultaneously? The biggest question is whether HR should deal with different generations, keeping the age factor or perspective in mind.


As per the Deloitte 2020 Global Human Capital Trends report, the leaders have experienced generational differences while developing and delivering workforce programs. However, nearly 5% of leaders believe that they are well-equipped to lead the multigenerational workforce efficiently. This is itself a red sign for the HR leaders.


Working according to the set business goals for driving the desired impact


As mentioned above, the HR budgets are likely to get trimmed as we enter 2022. As per Gartner HR Budget and Staffing review 2021 report, 4 out of 10 leaders are thinking about decreasing the HR budget and the key functions in 2022. Actually, the HR budget was doubled in 2020 because HR was responsible for managing the employees working from home.


  • 7 out of 10 leaders are planning to decrease the recruitment budget
  • Nearly 30% of leaders are thinking to slash L&D expenditure
  • However, another 40% of leaders are planning to increase the L&D budget, which is quite interesting.


These reports and stats are pointing towards one direction: the mindset shift. Some organizations are planning to decrease the L&D expenditure for investing resources in different areas, while some are doing the opposite.


The best way for HR leaders to deal with this mindset shift is to provetheir beneficialimpact and value even although the L&D is increased, decreased, or kept the same.


The inclusion and diversity initiatives


You probably don’t know that HowNow also discussed about diversity and inclusion initiatives in their 2021 prediction reports.


Considering some Gartner stats, above 40% of HR leaders are planning to spend more on diversity and inclusion, and the remaining will be entering 2022 with the same budget. However, only 6% of HR leaders have decided to slash their D&I expenditure. The same stats were also backed by the Boston University and Future Workplace in their HR Sentiment Survey.


But alone, HR cannot lead the inclusion and diversity initiatives independently. The biggest problem is the organizations aren’t thinking about these initiatives. As per Ideal, nearly 70% of organizations feel they are giving their best in acquiring diverse employees, whereas 10% of companies can only understand the importance of inclusion and diversity initiatives.


As a result, HR and the leaders should be on the same page. It’s expected that senior members should show some responsibility and commitment towards D&I.


Updating the employee benefits and other perks


The employee benefits and perks went through a rough phase in 2008,which also happened in 2020. In the mid-2021, many companies even stopped employees from ordering pizzas and booze on special occasions and weekends (especially Fridays).


Instead of giving some valuable perks and benefits, companies started giving free gym memberships, free outfits, and similar things. Fortunately, many employees didn’t entertain such perks and benefits and fought for the deserving perks.


The employees actually understood they have to work more with the salary cut, and they don’t deserve such perks and benefits.


Recently, Perkbox surveyed more than 1,000 employees to evaluate what employee perks and benefits they expect in 2022. They disagreed with the perks linked with staying in the office, like complimentary breakfast on the table and birthday presents.


The expected perks were related to work-life balance. In simpler words, the employees expect discount coupons on groceries, dining, and outfits and recognition for the work. They desire recognition for their efforts even if they work from home.


According to the University of Mississippi’s Novak Leadership Institute and Kansas State University, you won't believe that young working professionals are more concerned about getting recognition from managers instead of holidays. In particular, they deserve two types of respect:

  • Being valued as a team player
  • Getting respect outside of the workspace.


Coming back to the Perkbox survey, the employees expect advantages related to improving wellbeing, counseling sessions, and flexible working hours. On the other hand, around 50% of non-remote employees expect financial assistance for paying household bills.


Final Thoughts


This wraps up the list of key focus areas of 2022 for HR. The field of human resources is rapidly evolving than ever, and it’s time for HR to give their best in 2022.


However, this is also the best time to work in the HR department. From acquiring the right talent to revamping the employee benefits and other perks, HR will be at the forefront of managing the crucial business challenges in 2022.


HR professionals need to be more responsible for bringing success to the table and expanding their horizons in the upcoming year to add more value to the businesses.


Thanks for reading our post!