Human resource professionals at small and mid-sized organizations have a lot on their plate over the next five years, according to Paycor's HR Trendcast report, "What will HR look like in 2022?"
"HR leaders feel optimistic about the direction of their business in 2018 and employee morale is high, but two big challenges—finding the right people and keeping them motivated—will keep HR busy," the authors write.
What else does HR worry about? Harris Poll surveyed more than 500 HR professionals and C-suite executives within small and mid-sized organizations on behalf of Paycor, and found that nearly 45 percent say recruiting and retention; 30 percent say developing talent; 28 percent say managing the skills gap; 28 percent say managing workplace conflict; and 26 percent say managing the multi generational workforce.
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"What do these challenges have in common? They're all about PEOPLE," the authors write. "The trend is clear: as core HR tasks become automated. HR can turn their attention to engaging and developing people. Rigid, legacy HR systems and manual processes will no longer prevent HR from cultivating relationships, and HR's desired focus will come to life: making a difference in the lives of their employees."
The next five years will see heavy investment in people and data – 40 percent of respondents will be investing in recruiting in 2022, compared to 34 percent today; 36 percent will be investing in performance management, compared 28 percent today; 29 percent will be investing in performance management, versus 20 percent today; and 31 percent will be investing in data analytics, versus 26 percent today.
"While everyone talks about finding top talent, HR understands that it's equally important to develop and retain talent," the authors write. "This dynamic is exacerbated by millennials who tend to job hop until they find the perfect fit. So, what's the blueprint for success? Look for HR teams to invest in learning and performance management software to improve training throughout the organization."
One key finding: the annual performance review is "an endangered species." Today 51 percent conduct annual performance reviews — by 2022, 38 percent will conduct such reviews, but they will be more frequent and less formal.
"If employees don't get frequent opportunities to learn and grow, and if they don't get timely feedback, chances are they'll hop sooner rather than later," the authors write. "This tendency, along with the tedious and time-consuming paperwork of the traditional annual review, is forcing many employers to revamp the review process."
The survey also found that 82 percent of respondents say "soft" skills will become more important as HR becomes less administrative, and 47 percent expect their jobs to become more "big picture" and strategy. By 2022, HR pros predict their teams will be focused on three top priorities: training and development; employee retention; and employee morale.
"'Automation' might sound scary, but it's actually the door HR will walk through to get to a new place in their organization, a wide-open place that gives them the breathing room they need to coach and develop, retain and grow their company's greatest asset, their people," the authors write.
Paycor also launched its Turnover Dashboard, an HR analytics dashboard to "help solve employee retention challenges" with actionable insights. The dashboard is customizable, allowing users to break down turnover data by location, department, manager, tenure and more, for any time period. Additionally, users can tailor and track reasons for turnover to better understand turnover trends and drivers.
The Turnover Dashboard is part of Paycor's Workforce Insights HR suite of analytics tools that allow users" to explore workforce issues and discover trends."
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Katie Kuehner-Hebert
Katie Kuehner-Hebert is a freelance writer based in Running Springs, Calif. She has more than three decades of journalism experience, with particular expertise in employee benefits and other human resource topics.
