A business is built on its people. To manage this essential element of any enterprise, the HR department team are the unsung heroes of corporate strategy. HR trends over the years have ranged from ‘do we really need HR?’ to AI-enhanced departments at the cutting edge of business technology. At Finesse Resources, we've been looking at not just the impact of the last two very complex years but the future of HR too. And if you're working in an HR department, we don't think you need to worry about your future too much – you're here to stay.
However, while HR departments may be a critical factor of any business, there are fundamental changes on the horizon. From the huge growth of homeworking to a lean towards technology, changing attitudes about inclusion and a raft of new legislation, HR teams have a lot to think about and plan for in 2022 and beyond.
The impact of homeworking
The way people work has transformed over the last two years. During the first lockdown in 2019, we were told to work from home. For thousands, this was a revelation. The daily commute became a thing of the past, every day was dress-down-Friday, and spare bedrooms across the UK were converted into home offices.
And it worked. Not only did workers discover that they could do their job remotely, but productivity went up, employers were happy, and everyone except city coffee shops and sandwich bars embraced telecommuting.
While the virus may be in remission, we believe that virtual working is here to stay. While the slow drift back to the office environment has started, not everyone is happy to head back to swap scuttlebutt around the water dispenser. According to a YouGov[1] survey, 57% of workers would prefer to keep working from home at least some of the time once all restrictions are lifted.
Why has homeworking had such a huge effect? Well, firstly, there’s the financial savings. Commuting costs money. But if your office is just a few steps from your living room, that cost is eliminated at a stroke. Then there's that all-important work/life balance that's become much more of a focus for time-starved workers. Faster broadband connectivity means that meetings can be done over Zoom and that big report can be shared with everyone who needs it via the Cloud. Finally, there’s the flexibility to work outside the 9-5 framework that, as long as the work is done, is deeply appealing.
HR responses to home working
One of the significant drawbacks to homeworking is isolation. This is where HR teams need to step up and be the connection between 'the office' and the worker. It's important to keep remote employees engaged and feeling like they are still part of the organisation and not simply a satellite worker. Out of sight should not mean out of mind. So HR trends for the coming years will focus on engagement and connectivity to provide that link. This can be through online meetings, employee surveys and ensuring internal communication is fluid and far-ranging.
There is one caveat, though, and that’s ‘Zoom Fatigue’. There’s no point having a meeting just for the sake of it – there has to be a purpose, a clear strategy and an achievable outcome. It’s up to HR teams to hit the right balance and keep everyone engaged.
The rise of wellness and mental health issues
Another aspect of the workplace that's been highlighted by the Covid-19 pandemic has been workers' mental health and the concept of wellness. The sense of isolation that homeworking can bring is a real issue. But it's highlighted other considerations too, such as workplace bullying, stress, and burn-out. HR trends for the future will need to include mental health and wellness as one of their key focuses, regardless of the size of the business. The key to this, once again, is communication. It's up to HR strategists to ensure workers feel that they can talk openly about their mental health and wellbeing without fear of retribution.
HR teams should be encouraging everyone, including bosses and business owners, to play their part. If a boss demonstrates that they're willing to take time for a bit of self-care, it will encourage other team members to follow suit.
Diversity and inclusion
Diversity and inclusion should automatically be right at the top of the list for any HR department. But thanks to some major positive moves forward in how we regard inclusion, it will be even more critical going forward. Developing a fair and even playing field for everyone will create a genuinely inclusive environment. If workers identify areas that could benefit from a strategic rethink to achieve that, it’s the duty of the HR department to listen to their concerns and provide solutions.
HR trends aren't just passing fads. They also include fundamentally profound and permanent alterations to how a company performs. Diversity and inclusion are never 'done and dusted'. It's a continuous process that helps all businesses become better, more proactive, and more positive working environments for everyone.
The lean towards technology and AI – Press one for HR…
An ongoing and increasingly important HR trend for 2022 and beyond is the advent of technology and even AI as a central core of Human Resources departments. It was inevitable that the increase in remote working would lead to a rise in technological solutions for business management. Known as ‘doubling down on digital’, it brings with it the potential for HR departments to upgrade and even futureproof their systems.
HR trends for 2022 indicate that a shift towards Cloud software and automated management systems may help spread the workload. Processes like automated onboarding and remote recruiting will change how HR manages workforces. The use of Cloud-based portals will allow remote workers to access essential documents, as well as creating more proactive data storage solutions. The one thing that HR departments need to consider, though, is the legislation surrounding the storage, access and use of personal data. GDPR means that the way personal data is stored and used is strictly regulated. If your business has overseas workers, it's even more important that HR teams comply with both UK and EU regulations.
Streamlining HR processes opens the door for more automation, but it's vital that HR trends don't move too far towards AI and away from that 'personal touch' workers consider to be so important.
Outside/in – A new way of working
One potential variation for 2022+ put forward by Professor Dave Ulrich, a specialist in HR trends, is the outside/in approach[2]. He describes this process as: "The outside-in wave moves from value creation to value delivery when HR 'customers' are not just employees, leaders or business strategies inside the organisation but also stakeholders such as customers, investors (debt or equity), and communities outside the company. HR value delivery is captured when HR analytics are not about activities with scorecards, dashboards and insights but about the impact of HR activities on key stakeholders."
This means that three core areas are under review – talent, organisation, and leadership. These three aspects are not separate identities but work synergistically to create a whole. They're also not new concepts, but they are increasingly the focus of HR strategists.
With talent, it's all about how businesses respond to changing situations and enable their workers to add to their skills sets to accommodate those changes. The shift towards homeworking is a case in point.
Leadership needs to be more interactive and aware that the actions of those at the top of the organisation are often mimicked by those further down the chain. In this challenging world, HR departments need to recognise that they're responsible for everyone, including top management. It's up to them to ensure everyone is 'singing from the same sheet'.
Wrapping it Up – The future of HR is bright
While HR trends for 2022 may still be dominated by the change in working practices, other factors that integrate with the shift to remote/office-based combination working need to be positioned correctly to create a cohesive and workable HR strategy. At Finesse Resources, we're already looking at how our structure can be redefined to incorporate Cloud-based technology and how each department coexists within the organisational matrix.
Wellbeing, mental health and even Covid-19's legacy will all have to be critical components of any HR plan, as will the constant struggle to keep up with compliance, legislation and data protection laws. Keeping workers engaged and feeling that they're still 'part of the team' even when they're working from home will also be necessary. So one of the most significant considerations for HR personnel in the future will be empathy for the challenges that all workers face.
The most important thing, though, is that HR continues to be the primary communication conduit for their organisations. That role has to be taken to the next level to ensure that businesses grow and prosper in the coming years.
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