What HR Trends Will Emerge in 2021?

No one could have predicted the disruption that the COVID-19 pandemic has caused to the labor market in general and the HR vertical in particular, and how its impact is set to continue into next year.

According to a US Bureau of Labor Statistics report, unemployment rates in the U.S. increased sharply from 3.9 percent in February 2020 to 14.1 percent in May 2020, which is equal to nearly 21 million people in the American workforce having lost their jobs due to the pandemic. On the bright side, according to the same report, the global workforce market has recovered quite a bit since June 2020, and therefore, it is crucial for HR to get ready to deal with the new normal.

As the COVID-19 pandemic continues to rage across the world, it is safe to say that the expected 2021 HR trends can all be linked back to the pandemic. Here are five of the biggest HR trends that will come about in 2021 and how HR leaders can prepare for them:

Working Remotely

The COVID-19 outbreak has permanently changed the way we work — the concept of working from home has taken off like never before. A number of tech giants have decided to let their employees work remotely for the long term. In May this year, Twitter informed its employees that they could work remotely forever, with Facebook following suit by announcing several work-from-home policies and ramping up its hiring of remote workers. And more recently, Microsoft unveiled its “flexible workplace” and announced that it will allow more of its employees to work from home on a permanent basis.

There are myriad benefits of working from home for companies. For instance, it allows them to save a huge amount of money that goes into office facilities and gives them access to a larger talent pool without geographic limitations.

That said, the work-from-home concept also raises a number of issues which the HR leaders and professionals must take into consideration. Some of these are reinforcing the company’s culture virtually, pay equity, paid time off/family and medical leave and other HR management policies. Therefore, HR leaders may need to develop new policies so they can balance the pros and cons of working from home with supporting employee performance efficiently.

Adopting Modern Technology

The COVID-19 pandemic has accelerated the pace of digital transformation in the workplace. One survey by LeapPulse found that more than 83 percent of staff members expressed that their companies had focused on digital technology during the pandemic. Moreover, in another survey by Globant, 33 percent of employees cited the difficulty in accessing necessary tools and resources as the top factor negatively impacting their productivity and work output. Therefore, using technology for work has become essential for all businesses if they want to boost their employees’ productivity.

As a result, it will be essential for companies to adopt automated solutions, remote connectivity platforms (such as VPNs), better collaboration tools and stronger IT infrastructures. In addition, enhanced employee training will be crucial, so staff members are better equipped to transition both in and out of the office effectively with little to no disruptions.

Focusing on Employee Emotional Wellbeing

Since the pandemic, a large percentage of the workforce has had to face varied stresses and concerns, including financial, childcare and household responsibilities. According to research by mental health provider Ginger, 69 percent of respondents claimed that the pandemic has been the most stressful time of their professional careers, even more than such major events as the 2008 Great Recession and 9/11.

To combat the situation, many companies have taken steps to help their employees address their stress at work and in life. According to data from Fidelity Investments and Business Group on Health, 95 percent of employers have included emotional and mental health programs in their corporate wellbeing platforms.

There has also been a rise in the use of employee wellbeing apps in 2020, which is set to continue into the next year. In one such instance, coffee chain Starbucks announced that the company will offer free access to Headspace app — a daily meditation and mindfulness platform — as part of its “Mental Health Matters” campaign.

In times to come, HR practitioners need to apply this positive trend to their businesses in order to strengthen employees’ health, both mentally and physically.

Embracing Diversity, Equity and Inclusion

There are many issues that come to mind when we talk about diversity, equity and inclusion (DE&I) in the workplace; however, with remote working in play, there will be many more concerns for HR teams to handle in 2021. One of the most obvious is the challenge of establishing and maintaining company culture when the workforce is working separately.

DE&I is set to become a bigger trend in the coming months, and it’s therefore time for HR professionals to take charge now and review their company’s current policies to address potential inequalities and racism issues in the workplace. Based on a McKinsey report from 2015, “Companies in the top quartile for gender or racial and ethnic diversity are more likely to have financial returns above their national industry medians.”

Reinforcing Employer-Employee Relationships Virtually

The pandemic has not only changed the way people work but also the way they communicate with each other. Online platforms such as Zoom, Microsoft Teams and Google Meet have replaced face-to-face communications, discussions, interviews and other meetings. And because in-person touchpoints are extremely limited, virtual activities for maintaining workforce morale and teamwork spirit as well as reinforcing the relationships between employers and employees are now more important than ever.

HR leaders will need to step up their efforts to make team members feel connected and part of the organization. They can take a cue from the employees of PwC, who created several initiatives to improve their mutual relationships during the COVID-19 pandemic. One such initiative was where the employees of PwC collaborated on a video to celebrate LGBTQ Pride Month. By encouraging its employees to celebrate this event, the company reinforced its culture and increased its chances to embrace diverse talent pools.

Due to the coronavirus situation being extremely complex and unpredictable, HR leaders and practitioners will face numerous challenges in the near future, and keeping up with the trends is one of the best ways to overcome this situation with minimum loss.