2022 employee benefits & workplace predictions: Looking ahead to the future of work

Last week, we looked at how industry experts expect various aspects of work to evolve in 2022. The one aspect that we haven’t taken a serious look at, and perhaps the most influential, is the actual workforce driving companies forward. From the growing influence of Gen Z to the ongoing impact of social change movements, a profound shift is underway.

So what can we expect from this new workplace zeitgeist? Here’s what industry experts have to say:

The Gen Z voice will get louder

Looking across the workforce today there is a stark generational difference between the generation that will soon leave the workforce (Boomers) and the new generation on its way in (Gen Z). Gen Z is not only laser-focused on using technology to solve problems– 63% think that using an employee engagement and productivity platform could help their company improve the company’s culture, employee communications, inclusivity, and training and development efforts–but 86% have already experienced discriminatory issues or abusive behavior in the workplace. As a result, Gen Z will likely have a significant impact on today’s workplace as we know it, from how we use technology, think about company culture, the ways issues regarding workplace discrimination and diversity, equity and inclusion are addressed, and how companies deal with the most pressing social and political issues

–Sammy Courtright, co-founder and chief brand officer, Ten Spot

Employee relations lead the talent conversation

In 2022, we will see an increase in the strategic importance of employee relations (ER) because of the need to create fair and transparent workplaces. The Great Resignation has made attracting and retaining top talent more important, but also more difficult. If an employee feels that there is a lack of trust, safety or equity in the workplace or doesn’t see leaders delivering on promises, they will leave. Therefore, more companies will look to their ER professionals to ensure employees are supported and feel heard.

According to our yearly benchmark study, 34% of companies who are not already using ER technology are very likely to do so in the next year. Where anecdotes and soft metrics fall short, ER technology fills the gap, allowing companies to leverage hard data and analytics to find trends and gain proactive insights. This allows companies to implement and adjust workplace policies and DE&I initiatives while increasing transparency with staff. HR & ER technology will be essential tools in the new year for every company.

–Deb Muller, CEO of HR Acuity

Employee input holds more weight than ever

They say the customer is always right, but in 2022, we’re going to see more U.S.-based companies going out of their way to developing competitive programs that meet employee demands for the new workplace (e.g., remote & flexible work, better pay, transparency, purpose-driven, etc.).

More employees want to work for companies that share their values, are flexible and transparent, enact purpose-driven initiatives, and engage on social and political issues that are important to them. That’s why companies will need to become better listeners (through Town Halls, safe spaces, or more one-on-one time with leadership), as well as find strategic opportunities for them to make contributions on issues most meaningful to their employees (e.g., employee giving & volunteering, leveraging their products for nonprofits and schools, etc.). Whatever it is, the current status quo won’t be taken too kindly amid the Great Resignation.

–Admas Kanyagia, vice president of social impact, DigitalOcean

Employer branding will make or break companies

Employer brand has risen to a top, dire priority for companies in 2021 – and in 2022, companies will need to effectively communicate benefits, perks, and most importantly culture to attract talent and stay viable.

HR teams will need to prioritize employer brand initiatives – or even define and hire for a Head of Employer Brand role – to convey their culture, values, and vision. And this effort shouldn’t end at the exit interview – company brand and culture will need to extend further to ensure employees are ambassadors for life.

–Samantha Lawrence, senior vice president of people strategy, Hired

Companies that adapt will be the ones that thrive

Keeping labor costs under control while keeping employees happy will continue to be a challenge. Companies want to manage this delicate equation well: how do you optimize labor and keep their employee turnover below certain rates so their businesses can continue to be profitable as before? This challenge will persist in the new year, keeping a pulse on how to raise the bar on employee experience while still focusing on optimized labor.

Since every industry has competitive pressure around labor, industries that are able to adapt more quickly, through the use of technology and the courage to take a leap of faith, will be the ones who thrive. They’ll start one step ahead of their competitors in the new year, and ultimately be able to survive the turmoil versus those who wait to take risks and learn from others.

–Sanish Mondkar, founder and CEO, Legion

Leaders will go back to the basics

Moving into 2022, leaders will be less knowledgeable, in the best way possible. The employee market has seen immense change in recent times, and top executives will need to operate under a beginner’s mindset. They will ask questions more frequently, trial run various solutions and heavily rely on their agility and adaptability. This provides the opportunity to learn quickly and maximize the chance for success.

–Omer Glass, CEO and co-founder, GrowthSpace

Employment moves from roles-based to skills-based

The idea of fixed roles is changing. If employers can better understand their current talent and their potential, they can assign employees to new jobs as needed or upskill employees to fit a new need. This helps best utilize the current workforce and keep employees engaged more deeply over time, while also hiring to fill those gaps employers can’t bridge on their own. And now with many employees working remotely, the top reason employees stay moves from the people to opportunities for fulfillment.

–Thanh Nguyen, CEO and co-founder, OpenComp

Traditional benefits go a la carte

Personalized lifestyle benefits took a front seat in 2021, with employers rolling out a range of various perks (from fitness, to therapy, to childcare offerings) and allowing employees to select those that best meet their needs. Sustained hybrid work combined with popular demand at the employee level will soon see this cafeteria-style approach extend beyond lifestyle and wellness perks to more fundamental benefits like health care insurance, dental insurance, retirement plans and more.

–Jordan Peace, co-founder and CEO, Fringe

Talent acquisition will become tech-centric and a core component of business operations

Talent acquisition has always been a key contributor to organizational success while being “housed” within HR. As business leaders embrace talent management as an essential business process that impacts business continuity, talent acquisition will become much more integrated into business operations. The identification, selection and assimilation of new talent will increasingly become the responsibility of line managers and a critical element of their role. As such, we will see the broad adoption of AI recruiting technologies by line leaders as a means of finding the right mix of talent to execute business strategy and workforce planning.

–Brian Powers, vice president of talent management & acquisition, Fuze

Companies will double down on training–especially for managers

Even before the pandemic, a report from 2018 indicated that 59% of managers hadn’t ever had any training on how to manage people. Because of the work transition everyone has been through, this number might actually be even higher now. Managers desperately need training on how to be managers, and they need training on how to be managers remotely. Training managers to effectively manage remote teams is a huge issue because managers are struggling right now, and when managers struggle, their teams and direct reports struggle as well.

–Sammy Courtright, co-founder and chief brand officer, Ten Spot

Rewarding talent will win

We’re entering the age of the Great Appreciation. This means that leaders who recognize the true stars of their organization and all their hard-working team members end up being successful in the years to come. Showing that effort is appreciated day in and day out will be the key to helping people thrive, keeping great talent on the team, and building amazing things!

–Hani Goldstein, co-founder and CEO, Snappy

Training will go beyond doing the day-to-day job

In 2022, we’ll see HR departments investing in leadership development in an unprecedented fashion, offering ongoing people-skills development like improving emotional intelligence and effective team building. Previously these trainings were only offered to senior leaders, but companies are investing more and more into frontline manager development, in the flow of their work, to impact teamwork and to generate higher levels of performance, particularly in a remote/hybrid world.

–Jon Greenawalt, senior vice president of customer transformation, 15Five

We’ll find out who the real managers are

Effective management will matter more. “Talking to someone in the office” was the way people managed before but now, they’ll have to be much more intentional and targeted in their managerial efforts. We’ll find out who the real “managers” are and who the people that simply got promoted are.

–David Powell, president, Prodoscore

Cultural shifts and process changes will be inevitable

In addition to reengineering HR operations to meet the needs of a distributed workforce, we will also see cultural shifts within organizations that will demand the focus of HR practitioners. In a very fundamental way, culture is shaped by the daily interaction of employees. In that regard, the relationship between managers and employees is of singular importance.

A hybrid work environment requires a more conscientious approach by leaders to “manufacture” the positive dynamic found in the traditional workplace. HR must step into this breach and introduce initiatives that target areas that directly impact the manager/employee dynamic. This includes promoting the adoption of communications platforms that enable continuous, productive conversations, introducing distributed leadership development programs to build new management capabilities, prioritizing employee wellness and mental health, and reengineering HR programs and processes to fit a distributed workforce.

The speed and efficiency at which leaders can recreate the culture they enjoyed in a collocated world will, in many ways, determine the success of the firm. HR must be prepared to support that transition by providing a revamped suite of services that help their leaders and employees successfully transplant their unique culture to the new workplace.

–Brian Powers, vice president of talent management & acquisition, Fuze