After two years of the pandemic, it was believed that nothing could surprise HR specialists anymore. However, the year that is about to end was not simple at all, as 2022 brought a high turnover rate that posed significant challenges for companies across all sectors and made recruitment an even more complex process than it was before.

Employee turnover was not the only challenge for HR professionals. If we were to summarize and discuss the main challenges faced by HR specialists in 2022, here’s what they would be:

Return to the Office

This year, numerous companies initiated a gradual plan to bring teams back to the office, with most opting for a physical presence of employees in the office for one to three days a week. However, they faced numerous challenges in this regard, as many employees showed reluctance about returning to the office. The reasons cited ranged from COVID-related concerns to the common seasonal illnesses, as well as the desire to save time spent commuting to and from the office.

Even under these conditions, a large number of companies bet on the benefits of employees returning to the office, including reconnection to organizational culture, interaction with colleagues, and face-to-face meetings.

Employee Turnover

As mentioned above, employee turnover was one of the main challenges this year. From the early months of 2022, an unusual increase in turnover occurred, prompting employers to think beyond traditional employee retention and motivation strategies.

This phenomenon had numerous consequences for companies. There were some difficulties in delivery flows to clients, increased costs associated with recruiting and onboarding new employees, as well as a decline in team morale caused by the loss of valuable colleagues.

Companies also lost experienced employees who added considerable value to their teams, both for clients and in integrating less experienced new hires.

Amid this increased turnover, HR specialists faced a much larger volume of data regarding personnel management. Without software tools like MyStaff, which simplifies, streamlines, and automates all processes related to the turnover of employees coming and going, the entire process would have been much more challenging and time-consuming.

Recruitment

For most companies, recruitment represented a major challenge in the year ending, primarily due to the reduced number of candidates and the increased competition among organizations for them.

Candidates not only had a significant number of opportunities but also had the choice of how to work, whether from home or from the office. As a result, recruiters offering hybrid jobs faced greater difficulties in filling vacancies, losing candidates to companies that provided remote work opportunities.

Whereas candidates would have done anything to sell themselves well in an interview in the past, we can say that this year many employers found themselves in the position of needing to sell job positions more effectively to candidates. Thus, HR specialists had to thoroughly analyze what the competition was offering, as well as the labor market as a whole, to align with candidates’ expectations.

Employee Engagement

Companies also faced difficulties in employee engagement. Some issues from the pandemic years persisted, largely due to remote work and employee burnout. On top of that, communication problems led to poor assessments of activities and inadequate allocation of growth and development opportunities.

When engagement levels are high, the number of employees wanting to change jobs is considerably lower, which prompted companies to make efforts on multiple fronts to increase engagement.

Moreover, the level of engagement within a company is an important indicator of the involvement and dedication of the employees belonging to that company. Employees who are uncertain about what is expected of them or who do not fully understand their role may be less engaged in the efforts of their teams and the company as a whole, leading to diminished productivity.

Pressure for Salary Increases

A combination of factors, including the explosive rise in inflation and the number of vacant positions relative to the number of candidates, has led to unprecedented pressure for salary increases.

Even long-term employees were more willing to change jobs when the salary offer was significantly above what they were earning in their current roles. In numerous fields, increases of over 50% were recorded—offers that companies often could not match, thus forcing them to let go of employees in important roles within their teams.

Legislative Changes

The number of legislative changes applicable to human resources was not small this year. Thus, HR specialists, in addition to all the challenges mentioned above, had to undertake specific measures for implementing each legislative change impacting HR.

Compliance with legislation is one of the essential criteria for any company to maintain a good reputation in the market, enabling it to attract talent and retain valuable employees and profitable clients in the long term.

Increasing Strategic Importance of Human Resource Management

The role of human resource managers has become increasingly complex since the early months of the pandemic and continues to see a growing degree of involvement in organizational strategy.

From adopting new technologies to managing the difficulties generated by low employee morale and team communication issues at all levels, a lack of human connection, to identifying out-of-the-box strategies for employee retention and engagement, we can say that the role of the HR manager has changed radically.

In 2022, the HR department played an important role in ensuring the company’s flexibility and competitive advantage, adapting the organizational culture to the new conditions of the job market, as well as achieving superior business performance.