HR Trends 2021: big challenges of the new year

HR Trends The past year was marked by a major upheaval in the world of work. Fixed, rigid processes and structures have had their day and have given way to a kind of “forced flexibility”. While digital processes and virtual collaboration have so far been neglected in many companies, in 2020 they will become the focus of attention from one moment to the next. This trend will continue in 2021. But we also expect many other innovations in the coming year.

HR trend # 1: Using home office solutions in a well-planned manner

In many companies, the transition to the home office took place without much preparation time due to the corona pandemic. Accordingly, there is often a lack of fixed structures, corresponding processes and a planned use of remote work.

The HR departments must now check which solutions can be implemented for changing work locations in their company. What does the ideal hybrid model look like, in which the creative exchange in the company is not neglected? The most important task for 2021 is to create predictability for the employer, but to allow the employees as much freedom as possible (e.g. for childcare). Efficient HR departments are supported by innovative software solutions on the subject of mobile work.

HR trend # 2: New benefits for the home office

Variable-pay-secure-pay Company bike, fruit baskets or canteen meals - a large part of the attractive benefits in the company is hardly a motivation for employees in the home office. Now it is time to create new benefits that also offer a performance incentive for remote workers, whether online further training offers, digital food stamps, fruit delivery directly to the house, care packages, mentoring programs or online health offers.

HR trend # 3: evaluate and use big data

The term big data has haunted the HR world for years. The huge amount of data that is processed every day in German companies offers gigantic possibilities. They have to be linked to one another in a meaningful way - for example, employee-related data with information from the ERP software - and then evaluated. With the help of artificial intelligence and a specialized data warehouse, the data can be evaluated in such a way that decisions can be automated with their help. As a result, they are hit not so much from the gut, but rather on the basis of real facts.

HR trend # 4: New strategies in recruiting

The past year has shown that personal presence in the company is not as important as expected. This enables you to develop new job markets - be it on a supraregional level or even beyond the borders of Germany. For this, however, the technologies and tools in recruiting are moving even more into focus: The applicant management software must cover the individual recruiting process individually. Job interviews via video or video-on-demand are increasingly becoming the standard. Chatbots also keep coming up for discussion - but more in other areas than in HR.

Speaking of Generation Z: They also continue to make themselves felt in recruiting. Artificial intelligence, virtual reality, applicant apps and recruiting platforms will continue to shape the scene in the coming year.

HR trend # 5: focus on health protection

In 2021, executives are increasingly concerned with health protection issues and are more in demand than ever as diplomats. While some employees are overly cautious and avoid any contact, others are affected by "Corona fatigue" - they no longer want to keep their distance. Here it is important to develop ventilation and spacing concepts that meet the more cautious target group (and also the legal requirements) and that can still be sold to the rest of the workforce as a normal program.

HR trend # 6: employee retention in the home office & changed leadership

If there is no regular exchange between employees in the home office, colleagues and managers, they will feel increasingly socially isolated. Employees' loyalty to the company is dwindling and willingness to switch increases. Managers are now asked to strengthen the team spirit, be it through online team events, joint “coffee breaks” or regular employee appraisals.

The leadership must also change in this context. Anyone who reverts to the antiquated control and monitoring of remote workers is wrong. This type of cooperation must be characterized by trust. Managers must increasingly hand over responsibility to their team members, who encourage their independence and commitment. It can best be supported by modern software solutions for talent management and tamper-proof time recording.

HR trend # 7: gig economy as an alternative to permanent employment

Many employees have already lost their jobs as a result of the corona pandemic and many more will follow. Employers are more cautious about hiring, but still need support from time to time. In doing so, they rely on the so-called "gig economy". In doing so, they engage self-employed persons and freelancers for individual tasks or short projects who carry out the tasks at hand remotely without being tied to the company. For job seekers, the gig economy with its platform work represents an alternative employment model on a freelancer basis.

HR trend # 8: Green HR for more sustainability

The topic of sustainability does not stop at the HR world either. HR managers are increasingly working on strategies for more environmental protection in the company. For example, instead of financing a company car, they can sponsor a long-term public transport ticket, lease electric cars instead of diesel vehicles, save paper through software-based personnel management and increasing digitalization, or pay attention to CO2 compensation.

HR trend # 9: process optimization in HR

Now that digitization has progressed much faster in Germany than planned in many places, processes must be scrutinized even more than before. In the HR area, this means that the extent to which processes can be streamlined and automated should be evaluated again and again, especially with the help of modern HR software, for example for time-consuming seminar management, onboarding or the digital personnel file. This creates time resources for the crucial tasks of the HR department. This includes, for example, the corporate culture, the loyalty of employees in the home office and on site or the tailor-made recruiting of new specialists.

HR trend # 10: Targeted promotion of diversity

Cultural Diversity Management Remote technologies allow work teams to be recomposed and tested over and over again. The individual qualifications, experiences and perspectives of the employees can be perfectly bundled so that a large whole is created. It connects men and women, German and foreign employees, young professionals and seniors. The diversity in the teams and the different perspectives now give employers the necessary head start.