For HR professionals in 2021, the Great Resignation was a very real and present problem. 4.3 million people lost their employment in December alone. There was a noticeable change in power among employees as the labor pool shrank and employers confronted talent shortages. Workers realized they were in high demand and could expect more: more flexibility, more pay, and more benefits. As a result, average hourly earnings have climbed by 4.8 percent year over year.
Before the pandemic, businesses were already competing for talent. HR professionals were thrown into even more chaos when they were forced to find new ways to meet these workforce demands while also adopting work-from-anywhere regulations almost overnight.
With a limited talent pool, HR professionals must be innovative, embrace new technologies, and come up with new strategies to attract and retain top personnel. To do so, HR departments should be willing to consider more progressive employment arrangements. Contract, contingent, and gig labor are examples of this. They should even explore using robots, automating HR operations, and retraining personnel in some cases.
HR directors must adjust the following HR processes as worker expectations evolve on job flexibility and other norms:
The days of just looking at an employee's time card or hours worked to determine productivity are long gone. Managers must adapt their thinking in a work-from-anywhere environment to managing people based on results rather than time spent sitting at a desk.
HR must explicitly establish job descriptions in order to achieve this. Managers must also express their expectations. HR should also encourage managers to give staff the latitude they need to execute their tasks while emotional intelligence in the workplace still giving coaching on timeframes, difficulties, and opportunities.
Employees demand more freedom not only in terms of working remotely, but also in terms of when they work. Only 40% of employees want to return to work, despite the fact that 70% of bosses want to. Most HR departments are not set up to accommodate this in terms of payroll, compliance, taxes or benefits. When it comes to hiring and maintaining exceptional people, this can be a huge hurdle.
Employees searched for development and advancement possibilities in their employment even before the pandemic hit – especially Millennials, who are known to leave jobs that lack such opportunities. By providing additional types of recognition and benefits, such as upskilling, HR may encourage employees to stay with the company longer.
HR transformation process may appear daunting at first, the benefits will pay off in terms of attracting and maintaining outstanding individuals — as well as ensuring your company's future success.