It is that time of the year: time to start reviewing and planning your HR strategy.
The last couple of years have deeply changed the work environment, with flexible and remote working, new regulations and virtual meetings, all becoming the new normal for large portions of the working population.
In our previous blog, “HR expectations for 2022”, we mentioned that no other professionals have needed to evolve as rapidly as HR Managers. Throughout the pandemic, HR has played a central role, not only in taking care of employees but also in how companies build organisational resilience and drive value for their business.
But when it comes to HR strategy, do we need to review it again, now that we are heading into 2022?
The answer is a triumphant ‘YES!’ so, let’s dive deeper and understand the importance of setting a comprehensive strategic HR review for your organisation.
There is no better time than the start of the New Year
The beginning of a new year is the perfect time to review old business strategies, including HR. In the last 20 months, many businesses have gone through significant changes, so having a solid and clear HR strategy in place becomes even more critical for the organisation and the employees.
Your approach to HR strategy today may be very different from how you had approached it two years ago. So, you may want to make sure that your HR plan aligns with your organisation’s overall business strategy in being able to prioritise goals, attract and secure the right talent, and strengthen the company’s culture.
The new year is also an excellent time to plan your policy reviews, especially when old regulations are no longer compliant with new laws. Every HR strategy should include regular reviews to help you make sure that your policies are effective and keep up to date with the industry’s best practices.
Setting new priorities for 2022
Despite the many twists and turns of the last couple of years, this moment offers a unique opportunity for HR professionals to shape the future of work and accelerate its shift from a service to a more strategic function.
According to research, the top priorities for HR managers in 2022 include building critical skills and competencies, together with organisational design, change management, and DEI initiatives (diversity-equity-inclusion). This shows how critical improving operational excellence will be in 2022. HR managers will work not only to shape a truly functional hybrid environment but also to create a more dynamic organisation that is ready to meet the demands of a post-pandemic future.
What should your HR strategy review include
When reviewing your HR strategy, it is important to consider your company’s overall plan, ensuring that it aligns with the overarching objectives and relates to all parts of the business.
To avoid getting overwhelmed by all this “strategising,” breaking the strategy into more manageable monthly or quarterly plans can make things easier. This will also create a best practice around setting aside time to review KPIs, goals and assess the results.
Because employee performance stayed high during the pandemic, it is essential to look at your workforce’s mental and physical health by including an effective well-being programme in your HR strategy. HR managers also need to build a more human and emphatic employer-employee relationship, as, now more than ever, employees want to feel understood and valued.
Along with a more human work environment, there is increasing pressure to improve DEI initiatives within businesses.
While it is unclear whether things will go back to the way they were, there is no doubt that those companies that maintained an inclusive and equal work environment will have created strong bonds and a powerful sense of trust and loyalty with their teams.
As the economy recovers, this positive culture will also provide a significant competitive advantage, as these companies will be able to attract top talent from a wide variety of segments.
The need for new talent is also related to the need for new skills: research shows that 29% of the skills present in an average job posting in 2018 will be obsolete by 2022, as new competencies are replacing old ones. HR professionals need to be vigilant when hiring new employees to ensure they have the correct skills and proficiencies that will benefit their organisation.
If you want to know more about developing an effective HR strategy, contact our experts today!