Team Natural HR took to the virtual streets to uncover the views, thoughts and opinions of over 100 HR leaders from across the UK to understand what the HR landscape looks like to them. This year’s ‘State of HR’ report looks ahead to the next 12 months and yields some fascinating insights into the profession.
After a year that brought with it the ‘great resignation’ and continued surges in remote and hybrid work, 2021 was, in its way, just as challenging as 2020 was for HR leaders.
This article provides an overview of the state of the HR profession and answers the most pressing questions, including priorities, trends, and challenges topping the list for our people teams in 2022 and beyond.
Pay in Human Resources
In the most recent data published on Glassdoor in early 2022, the average salary for those working in HR in the UK is £47,178. And yet, the average salary cited by our respondents was between £35,000 and £45,000.
Interestingly, this year’s research found that 45% of women earned more than the national average compared to 51% of males working in HR roles. Reassuringly, the number of men and women in receipt of wages over £75,000 was fairly evenly split, with 13% of women earning over £75,000 and 15% of men.
In 2022, the best-paid industry for HR continues to be real estate and property, with all respondents earning in excess of £55,000 – a staggering £8,000 more than the national average. This is followed closely by the professional services and legal sectors, with 75% of respondents working in these industries earning more than the national average, and manufacturing, transport and logistics where 50% earn more than the average.
Recruiting talent
In the latter stages of 2021, the quarterly CIPD Labour Market Outlook study found that almost half (47%) of employers reported that they had vacancies that were hard to fill. What’s more, 1 in 4 predicted that the number of vacancies that would be difficult to fill would increase in Q1 of 2022.
Interestingly, the task that is high on HR’s priority list also tops the list of their biggest challenges in 2022. 45% of respondents cited the recruitment of talent as the most challenging task for the year ahead.
66% of respondents shared recent staff shortages in the UK had impacted them. Of these, 56% stated that staff turnover has increased, 42% have had agency staff or temporary workers to fill gaps, and 33% have offered more training for existing staff to upskill and support short-staffed departments.
HR inefficiencies and admin
42% of respondents cite inefficiencies and admin as a significant challenge in 2022. Ever-changing guidance around the pandemic, surges in the number of COVID cases and the changing legislation surrounding the recruitment of employees from outside the UK has led to a huge administrative headache for HR professionals.
Thus, causing a number of inefficiencies while HR’s time is taken up by admin rather than focusing on strategic initiatives that add real value. While employers and employees alike are more accustomed to eleventh-hour announcements, changing guidance and safety measures today than they were in early 2020, the fast-changing nature of work is causing inefficiencies and a significant increase in administrative work for HR teams.
Now, with vaccines and boosters being rolled out, there is hope after a very challenging time for many, and a return to some kind of normality is on the horizon.
Employee Health and Wellbeing
In 2020, employee health and wellbeing topped the list of priorities for the year ahead as companies continued to be measured by how they treated their people during these tumultuous times. Reassuringly, this is still a priority for 64% of HR teams as savvy leaders step up to provide ongoing support for their employees.
Many have chosen to bolster their existing Employee Assistance Programmes with a curated repository of resources, documentation and services that are made available for all employees to access at any time. Others have re-evaluated flexible working policies to meet changing employee needs or improved benefits.
In the past two years alone, wellbeing has expanded beyond physical wellbeing to build a culture of holistic wellbeing, including physical, emotional, financial, social, career, community, and purpose. At the heart of this is the growing need for flexibility in where, when, and how employees work.
The World of Work in 2022
2021 was a whirlwind for HR. It’s fair to say that after the life-changing events of 2020, the world of work has been transformed forever. Workers around the globe quit their jobs as part of ‘The Great Resignation’, companies re-evaluated their flexible working arrangements, there was a further emphasis on businesses to contribute towards a greener future and extensive debate about the plausibility of a four-day work week.
Over the past 12 months, we saw leaders and businesses continue to adapt as the pandemic impacted entire sectors. ‘Hybrid work’ was a phrase barely even uttered by many of us before 2020, and the demand for remote working jobs has rocketed into 2022. Just take a look on LinkedIn, Indeed, or any other job site – the sheer number of remote or hybrid roles is truly remarkable.
Thereforefore, it is not surprising that an overwhelming majority (81%) of HR leaders shared one of their biggest priorities is to introduce a hybrid model of working in 2022, with a further 14% being entirely office-based and 4% operating fully remotely. The uptick in blended working that includes a combination of both office-based and remote working is clearly one that employees prefer, and candidates will actively seek out in job vacancies.
