Top 5 HR Trends to Watch Out for in 2022

Over the last few years, Covid-19 and the hybrid working model has truly transformed HR operations. While 2021 was the year where businesses tried to reinvent HR and its role in an organization, 2022 is going to be all about pushing boundaries, adopting technology and facing the continuing challenges with the pandemic. 

From embracing AI to devising innovative recruitment strategies, here are the top five HR trends to watch out for in 2022. 

1. HR Digital Transformation Continues at Full-Force

While many organizations across the globe have already begun their HR digital transformation journey, 2022 will see an increased adoption like never before. In fact, according to a report published by Grand View Research, the HR Tech market is expected to reach USD 43.29 billion by 2028. 

While currently this growth is driven by workflow automation and talent management software, experts suggest that similar technology will soon be integrated into every facet of HR. 

In 2022, advanced HR technology solutions will provide organizations many benefits, including:

  • End-to-end automation and streamlining of HR processes
  • A single platform for collecting, analyzing, and managing employee data
  • Improved employee engagement
  • Informed decision making
  • Meeting compliance and security requirements

2. Strategic Recruitment Counters the Great Resignation

In 2021, The Great Resignation came to be. People who were tired of low wages, lack of employee support, a poor work-life balance, and had perhaps savored the benefits of remote work thanks to the pandemic, all decided to quit and find a role that suited them better. Undoubtedly, this movement will spill over into 2022. 

According to LinkedIn, the demand for recruiters has increased by 7x since the wake of the pandemic. And as the talent war intensifies, traditional recruitment methods must take a backseat — it's the perfect example of out with the old and in with the new. 

Some innovative recruitment strategies that HR professionals will implement include: 

  • Identifying internal non-traditional talent
  • Revisiting candidates who made it to the final interview round but weren't hired
  • Developing social media campaigns to target skilled candidates
  • Creating inclusive job descriptions highlighting their equitable hiring practices
  • Partnering with universities and trade schools to hire fresh talent
  • Crafting a more personalized outreach strategy that focuses on what's in it for the candidate. 

3. Diversity and Inclusion Initiatives Will See Increased Adoption

According to Glassdoor, 3 out of every 4 job seekers look for an inclusive workplace when evaluating companies and job offers. And with the acute global talent shortage, organizations just can't afford to lose candidates because of DEI. 

That's why, in 2022, a huge focus for HR teams is to promote diversity and inclusion in the workplace. It isn't just a trend, it's a way for organizations to reach their full potential by improving productivity, stability, and profitability. 

4. AI Tools Will Continue to Enhance HR

In 2022, as part of their HR digital transformation journey, companies will also accelerate their Artificial Intelligence adoption plans. In fact, some HR experts believe that AI will entirely reinvent the HR function, in turn, improving overall efficiency and effectiveness. 

From auto-screening resumes and categorizing them based on the role to analyzing which candidate is best suited for which role, the applications of AI in recruitment are truly endless. 

But that's not all! There are a plethora of other use cases for AI which will be put to the test in 2022, including gathering employee feedback, boosting engagement, and upskilling workers by identifying their strengths and weaknesses. 

5. Focus on employee mental wellbeing

Deloitte's 2021 survey showed that a third of millennials and Gen Z took time off work over the last year because of stress and anxiety. Today, mental wellbeing is no longer a 'nice-to-have' benefit— it's a must-have. 

And that's why one of the main focuses for HR teams in 2022 will be changing the stigma around mental health and encouraging employees to talk about it. 

Some initiatives that HR teams across the globe plan on implementing this year to ensure employee wellbeing include: 

  • Conducting frequent wellbeing check-ins
  • Giving employees more flexibility through policies like a 4-day work week, remote working, etc. 
  • Offering wellness days and access to meditation and yoga classes to help manage stress
  • Training managers and team leaders on how to listen and respond to mental health concerns, in turn, creating a safe space for employees. 

These are the top 5 HR trends for this year. The key takeaway? Tech will continue to be a transformational force in HR. People Ops teams would be wise to focus on adopting the right technology, but wary about overplaying that hand or even getting unnecessary tools.

To help you navigate these waters, we’d recommend complementing this reading with our blog on advice from sales leaders on how to buy the right HR tech, or one of our basic buyer guides, like the best expert-rated HR software.

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