BenefitsPRO survey finds HR specialists responding to changing times

The COVID-19 pandemic resulted in many work-related challenges and changes over the past two years, bringing a new focus on the importance of human resources departments, a new survey from BenefitsPRO and ADP has found.

The new report is titled: “A Seat at the Table — how the Pandemic Changed HR’s Influence, Outlook, and Priorities,” and outlines how the role of HR has grown at a time when companies are scrambling to attract and retain employees, who have a range of new issues and options.

Nearly three years after COVID-19 first disrupted the world’s economy, the report says, “HR remains front and center, with HR leaders now advising from the C-suite at 7 in 10 organizations, as companies reimagine their work models, cultures, and recruiting strategies to match evolving employee expectations.”

Increasing influence — and changing roles

The study, which surveyed more than 100 HR professionals, underscored the growing importance of HR. Close to two-thirds (59%) of those surveyed say that HR’s influence has increased in their companies as a result of the pandemic. More than 1 in 3 (37%) of those surveyed say HR leaders have joined the C-suite at their organization in the past three years. The report points out that HR now has a senior leadership voice at 72% of companies.

With the growing influence comes growing budgets, the report suggests, with 74% of HR professionals expecting an increase in HR spending over the next 3-5 years at their organizations. Respondents expect increases in a number of HR areas, with health care benefits (58%), compensation (36%), HR technology upgrades (32%), training and development (31%), and diversity, equity, and inclusion (DEI) programs (24%) topping the list of priorities.

The need for specialized HR experts is growing as well, the report says. More than 4 than 10 HR leaders say their companies have added specialists in technology, flexible work, recruiting, or compensation. The report notes that Pauline Sobelman, director of client experience at AHT Insurance, says a changing regulatory environment may spur more specialization. “Many companies have traditionally relied on HR generalists,” Sobelman says. “Now, as more legislation comes up at municipal levels, not just the state level, it’s becoming extremely difficult to be a generalist and keep track of the regulations. With the liability attached to getting it wrong, companies are finding they need dedicated people with specialized expertise in-house as well as outside experts they can call on.”

New challenges, new solutions

The rise of DEI issues is just one area where companies are responding to the concerns of employees. The survey finds addressing DEI issues is a top-three priority for survey respondents (48%), following recruiting (74%) and retention (60%).

To meet new challenges, employers are looking at new approaches to HR, with 66% saying their organization is likely to explore adding innovative benefits as a result of the pandemic. These could include tuition reimbursement, fertility benefits, flexible work arrangements, wellness programs (including financial wellness), and pet insurance.

As many reports note, mental health benefits are also getting increased attention. “Employers are taking a total rewards approach as they compete for talent,” says Bobbi Kloss, director of human capital management services for Benefit Advisors Network. “It’s important to have not only a health and welfare package that’s competitive but also policies and programs that support employee wellbeing and work-life balance. When considering benefits options, I like to conduct employee engagement surveys that ask employees about their need and what keep them from being most productive at work.”

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These changes are also an attempt to respond to the needs of younger workers, who have grown up in a digital world where traditional work hours and work roles may seem less appealing. The survey finds that 51% of Gen Z workers expect their organization to enhance or expand its benefits programs. The report adds that voluntary benefits may play a central role in helping companies add benefits options and value for employees.