Exploring today's context and the driver's behind our HR Trends for 2022
Before diving into the three foundational HR trends we see for 2022, it’s important to set the scene. Our trends exist within the context of the market today. But what are the major pillars of today’s work context?
It’s clear the world isn’t going to suddenly snap back to normality in the wake of the pandemic. Varying vaccination rates and levels of treatment around the world also mean that the experience and impacts in different parts of the world continue to vary greatly. Even parts of Europe and the USA which were thought to be emerging
indefinitely from the pandemic see hints of new waves of infections rising. All of this indicates that the impacts of the pandemic are set to be felt for long after it has dissipated. Mental health implications are just one area of concern, with a big impact on the world of work.
By now you’ve likely heard all about it. The Great Resignation is the name given to a dramatic increase in voluntary resignations that has occurred around the world during 2021.
One Microsoft study in early 2021 found that 40% of the global workforce were seriously considering leaving their employer in 2021. The hard facts of what happened are equally alarming: data released in late October 2021 in the US showed that 2.9% of the entire workforce, quit their jobs in August 2021.
That’s 4.3 million Americans resigning in one month – a new record.
The reasons for this wave of resignations vary from pandemic burnout, a collective reassessment about priorities and what matters most - people’s mindset shifting from ‘live to work’ to ‘work to live’, and a resistance to giving up the flexibility of working remotely in the face of companies calling workers back into the office.
81% of C-suite leaders said they would not have been able to operate effectively during the pandemic without HR technology.
Flexibility and responsiveness are also major benefits technology brings to HR.
89% of the C-suite and 83% of HR leaders say HR technology enabled them to be more flexible and responsive to changing needs while helping their businesses become more resilient.
This data comes against the backdrop of the ever-increasing speed of technological advancement.
Technologies that were thought of as ‘sci-fi’ only a few years ago (think Advanced Machine Learning, Virtual Reality and The Internet of Things) are now becoming increasingly realistic investment opportunities for HR leaders.
Often, however, significant gaps exist between the maturity of organizational processes and the ability of new tech to add real business value.
Technology advancement, in many cases, could bring the danger of an obsession with shiny new toys over core processes.
Alongside an aging work population, the arrival en masse of Gen Z in the global white-collar workforce is set to have a big impact. Born in or after 1997, the oldest Gen-Z individuals are around 24 years old, meaning we’re reaching a point where a greater proportion of them are finishing their studies and entering full-time work.
Their desire for flexibility and purpose at work, together with their attachment to technology and desire to be ‘good global citizens’ will undoubtedly require organizations to rethink many things in 2022 and beyond.
The World Economic Forum predicts more than 1 billion people will need to be reskilled globally by 2030.
Driven by the pandemic, the digitization of work, and a growing talent gap, Fosway found that 59% of European organizations reported that skills had become more important, and 56% have taken action to accelerate their skills agendas.
It’s clear that upskilling and reskilling will be a strategic priority for organizations everywhere in the coming years.
Born in or after 1997, the oldest Gen-Z individuals are around 24 years old, meaning we’re reaching a point where a greater proportion of them are finishing their studies and entering full-time work.
