Employee Recruitment And Retention Are Going To Be Big HR Challenges In 2022

The tight labor market and effects of the Great Resignation are expected to continue into 2022.

A survey by human resources services provider XpertHR has found that 89 percent of employers are expecting recruiting and hiring to be either “somewhat” or “very” challenging in 2022. However, despite these concerns 69 percent of them expect their workforces to grow next year.

XpertHR's Survey of HR Challenges for 2022 also found that organizations appear more bullish concerning the size of their workforce going into 2022 than they were one year ago, as the percentage of employers expecting to expand their workforce grew from 48 percent in last year’s survey to 69 percent this year. It also found, following recruiting and hiring, that employee retention (79 percent), workforce planning (67 percent) and vaccine mandates (66 percent) were among the most challenging issues facing the HR function in the new year.

“While employers foresee challenges recruiting talent, a majority also anticipate growing their workforce, making the labor shortage even more of an acute pain point,” says Amanda Czepiel, head of content at XpertHR.

Respondents told XpertHR that to counter these challenges, they plan to increase salaries and hourly wages for incoming workers (60 percent) and increase salaries and hourly wages for existing employees (60 percent). Also in the mix are increased flexible work options, such as hybrid, fully remote or flexible hours for new hires (48 percent) and existing staff (44 percent); and an increase in advertising around job vacancies (44 percent). Employee retention tactics also include opportunities to develop employees’ careers within their roles (e.g., certifications, trainings) and increasing employee engagement initiatives, both of which were cited by 53 percent of respondents.

“These recruitment and retention efforts are natural next steps and are consistent with what we’ve seen from employers eager to overcome the labor shortage,” says Czepiel. XpertHR’s Salary Budget Survey 2022, released in November, projected a median salary budget increase of three percent across all three employee groups covered by the survey: exempt, nonexempt and officers/executives. In that survey, nearly eight in 10 (79 percent) organizations cited recruitment and retention as an upward pressure on total salary budgets for the coming year.

Businesses Move To Better Support Shift To Partial Or Full-Time Remote Work

With the shift to remote work becoming commonplace over the past two years, business organizations are putting tools and procedures in place to support these remote or hybrid workers.

A survey of 8,329 business leaders and office employees by computing accessories manufacturer Targus found that 85 percent of organizations have either completed or are undergoing this transformation.

The survey also found that more than half (52 percent) of respondents still do not have the ideal workspace setup at home. While more than half of people (58 percent) prefer hybrid or remote working environments, only 36 percent of workers in North America describe themselves as hybrid or remote workers.

When asked about their biggest workplace priorities; sustainability, embracing new ways of working, and physical and mental well-being were at the top of the list. The study found that more than 76 percent of respondents state that sustainability should be a top priority for businesses, and 74 percent of them value sustainability as a key consideration for choosing their new employer.

Also, U.S. decision makers are more likely to believe better tech and accessories increase employee satisfaction (79 percent) and productivity (79 percent), compared to other countries.

“In our entire company’s history, we can’t remember a time more turbulent, nor seen a more rapid adoption of different technologies, and how we have come to rely on them,” says Andrew Corkill, vice president, global marketing and ecommerce at Targus. “Our research underscores the importance for today’s businesses to equip their employees with the right technology tools to improve productivity and well-being, whether they are working at home, in the office or both.”

The survey found that while people are starting to return to the office, many are still working from home, with more than 41 percent of U.S. employees back in the office and nearly 32 percent who are hybrid workers. In the future, 58 percent of people in the U.S. would like to work hybrid or remote, while 37 percent prefer to work only at the office.