HR trends heralding major change to watch out for in 2022

March 22, 2023

Given this year’s events and the crisis that no one foresaw, redundancy has become a real issue for employees and talent acquisition in many cases has hit a dead end. As proven by the change seen in several industries throughout the year,  digitization has established that it will play an even greater role in the way HR professionals keep employees employable.

Digital support of HR processes is ranked within the top 4 this year among the most important themes and areas of focus for HR professionals. Because many employees are still working from home during these uncertain corona times, the importance of this theme is expected to become even greater, because the current lockdown of HR processes, though currently understandable, shouldn’t last long.

At the top of HR priorities for 2022, professionals agree that emphasis should be placed on development and training, recruitment and selection, and absenteeism. However, the impact of automation has also recently made its way on the list.

1. Value-driven company culture

The majority of HR professionals are aware of the effect that value-driven culture can have on the workforce. Transitioning to such a work culture solidifies the belief that the company itself has a deeper purpose and meaning.

This is especially important to keeping employees engaged and satisfied. Companies that commit to a value-driven culture can see considerable growth in engagement and retention.

In addition to improved culture, a value-driven approach can also lead to better business opportunities and increased revenue. A value-driven strategy goes above and beyond in terms of long-term financial benefit.

To accelerate the transition to a value-based corporate culture, it is important that organizations reward their employees when their individual actions contribute to achieving that greater goal. This is already a common practice in the higher management levels, as seen through the link between a manager’s remuneration and non-financial results like sustainability and performance.

2. Transparency about salary and remuneration

In 2021, employees expect more transparency about salary and remuneration than, say, five years ago. Many employees consider it appropriate to discuss their salary with colleagues and find it more acceptable to talk about rewards now than it was in 2015.

But that is not the only way in which transparency plays an important role. To date, more than 80 countries worldwide have adopted the equal pay for equal work legislation. There are also efforts in motion striving to make executive salaries transparent, as the CEO-to-employee pay ratio legislation is already in effect in the US, with the European Union soon to follow.

3. Recruit more carefully and reward more flexibly

While unemployment is at historically low levels worldwide, companies will be more cautious with their recruitment in the future. As we mentioned before, the current crisis of the pandemic has played the roles of testing crisis strategies, and preparing organizations for future change.

There is an expected trend for recruitment in 2022, and it will manifest itself as an emphasis on certain roles, ones that have a direct impact on sales and revenue. As such, roles centered around research, development, and sales will constitute the bulk of priority recruitment.

In addition, in order to maintain fixed costs, companies will be more likely to use incentives over a salary increase. These incentives would reward certain skills, specific projects, and achievements. On the other hand, the global digital transformation means that there is a high demand for technical skills in almost every industry, leading to more positions and higher compensation for these roles. Many companies hire people with niche technical skills, even if they do not immediately have a suitable vacancy or position.

4. The nomad

In 2021, companies across all industries will without a doubt encounter the nomad somewhere in the wasteland that is pandemic-suppressed recruitment. This refers to high-performing, talented professionals who switch jobs, companies, and even careers faster than the everyday employee. However, most organizations still consider hiring a career nomad a risk.

While these employers have a right to avoid such candidates, they often ignore the benefits of having professional nomads in the workforce. Multidisciplinary experience, industry curiosity, intellectual drive, and unparalleled flexibility can all have a positive impact on the workforce and business results.

That is why many employers are now taking steps to keep these versatile and flexible 'job hoppers' with great potential within their company. Nomads have the experience and the will to leverage it. More often than not, they possess a full set of soft skills that make great managers.

5. Unparalleled impact of digital transformation

Artificial intelligence is set to simplify the lives of candidates and HR departments alike. Using software such as chatbots, HR professionals can instigate and maintain contact with candidates more easily.  In addition, such technologies also make it simpler for HR departments to communicate with employees.

However, technological progress and innovation somewhat force organizations to develop continuously or risk falling behind. The change brought about by digital transformation will become a continuous process, one that is agile enough to adapt to disaster and sudden market shifts.

Transforming the company digitally can be supported by transforming the workforce itself. A company at the forefront of digital change can make the most of its workforce by establishing retraining programs built to re-orient your existing employees towards another role or to take on more responsibilities. At this point in time, it seems that the growth of the business itself will rely heavily on just how flexible and adaptable the company, the leadership, and the workforce can be.

While some skills can be taught through retraining programs, the IT sector is complex enough to warrant significant experience. As we mentioned earlier, there’s more demand for IT talent than there is supply. However, this is only true when considering the regional or local talent market. The truth of the matter is that the global talent market could hold the solution for employers looking to acquire and retain IT professionals.

Outsourcing recruitment to a headhunting agency with global reach can eradicate the difficulty of acquiring IT and Tech talent. In fact, JB Hired leading with a vertical focus on those specific roles. With access to a global network of professionals and an untapped talent pool, locating and sourcing talent for the digital technology industry is a matter of time and patience in navigating the new professional landscape.