HR trends to keep in mind for the year ahead
It goes without saying that the COVID-19 pandemic has caused a drastic change in the way every business does work. These changes and trends have affected customer relationships, supply chain management and more. However, some of the most drastic adjustments have, arguably, been in the area of employees and human resources. From the massive shift to remote work and virtual meetings to navigating what a hybrid work model and virtual employee onboarding can look like, business owners have added a lot to their plate in terms of HR and people management.
What have the last two years changed for human resources?
Changing work models
We’ve watched previously traditional work models morph into more worker-centric, flexible and productive environments. The government-mandated lockdowns may have been the catalyst to a wide-spread shift to working from home, but it seems many businesses have thrived. Some companies followed the model only temporarily while others have adopted it as a permanent choice and still others are navigating their way into something in between. Though your approach will depend largely on what your company offers, we expect to see businesses of all sizes lean into a hybrid or completely remote workforce model indefinitely.
Increased dependency on dependable technology
To support their work from home workforce, businesses are experiencing an all-time high technology usage with the goal of boosting productivity and keeping people connected. Though there was a moment when some experts thought these tools could begin replacing the need for entire departments (even HR) it actually showed a path of increased efficiency for experts and expert partners. By using the right tools, software and partners, human resources departments and staff have freed up their time to focus on the people around them.
Focusing on the employee experience
An HR department or professional’s focus employee needs has increased slowly over the last few years and picked up significantly within the last year. It’s no secret that employees are losing steam and that the great resignation may be affecting your business even today. By making sure you are proactively asking for feedback, engaging with your employees and working on continuously improving their experience - you position yourself as a desirable employer. This increases employee retention, loyalty and even improves your chances of hiring great candidates in the future.
Focusing on employee wellbeing
As an extension of employee needs and experience, studies have revealed that the pandemic has left employees feeling stressed and burnt out, some even frightened for their careers. As a result, it became a primary need to invest in employees’ mental health and wellbeing. This means having a supportive work environment, better communication and easy access to tools and professionals. Investing in a plan for supporting your employees in this way is well worth the return: a more engaged and inspired team to help your business thrive.
What hasn’t changed for human resources?
Maintaining or improving profit
The story is the same for many business owners: 2020 was set up to be their busiest and most profitable year yet. They were positioned for high growth and ready to succeed. Unfortunately, those that did not have their eye on longer-term goals alongside aggressive growth strategies suffered immediately. In terms of HR, the largest expense of any business is its payroll - it’s people. And it has always been difficult to balance having enough people to support growth while also managing the cost. While the pandemic sent a lot of businesses into new HR territory, it continues to be true that business owners need to keep long and short term strategies in mind when staffing their business to ultimately maintain or improve profits.
Keeping employees engaged
Businesses may have had to change how they engage their employees, but the need to keep them engaged has always been there. Good communication and employee engagement is the life of every business. Keeping an HR team or professional focused on their employees’ passion, commitment and happiness are key to business growth. That has always been true.
Driving business forward
The growth of small businesses is not easy as every simple change has seemingly cast a massive impact, especially throughout the pandemic. HR guidelines became more and more complex, but teams and partners rallied and built a foundation for businesses to stay compliant and even drive business forward. Through clear communications, strong leadership and customer-centered approaches, businesses were able to maintain and grow throughout the crisis. And a lot of times that started with a solid root in human resources and people management.
What should small business owners keep in mind going into the next year?
As new year’s resolutions begin occupying the minds of people around you, small business owners should focus on preparing for the year ahead. Preparation for the next year and evaluation of the previous year are both important, but challenging. While we’ve already covered what business owners need to keep in mind at their year-end mark, here are a few steps we think will be most important for next year’s success.
Set goals
Setting goals and objectives are crucial to your team’s performance. Use your goals as a tool for ongoing planning to help your small business get big wins. Also, review your goals from last year to see what progress you’ve made and how you can readjust expectations or rebuild.
Design an action plan
Now that you have your goals written down, it’s time to make them actionable. We love the SMART approach (making goals specific, measurable, attainable, realistic and timely). Break down each objective into regular segments - monthly, quarterly, daily - and set up a plan for follow-up so you can regularly monitor your own progress.
Focus on marketing
What do HR and marketing have in common? Actually quite a bit these days. A strong employee brand has been proven to have just as much positive impact on your business as your customer-facing brand. Get your logo on everything, budget for some swag and employee appreciation gifts and refine your employer messaging to help retain and gain the best employees possible.
Focus on people
You’ve set your goals, added action steps and shored up your brand. Through all of that, don’t forget the most important asset of your business - your people. Those supporting you today and those you know you’ll need for the future should always be a top priority when you’re making plans for your business. Involve them in your action plan and revised marketing. Ask them now and every day how you’re doing and how you can be better.
Don’t do it alone
We’ve said before that it’s common for over half of small business owners to take on every hat that a company demands to function - including HR. Whether it’s delegating to a trusted individual within your company or picking a proven partner to guide you, don’t do this all alone. There’s a lot to do and a lot to keep up with. By ignoring help today, you only lose time, focus and potential for growth for the future.
The last two years have been critical for human resources, and the world has introduced new ways to collaborate, communicate, and work. We now have a pretty firm understanding of what changes have run their course as well as the lasting trends we should prepare to see for a long time to come.