How To Create A Future-Proof HR Budget In 2022

As a new year dawns and the Covid-19 continues to transform the businesses, HR teams across the globe are putting heads together to plan the HR Budget for 2022. After braving the uncertainties and challenges of the past two years, organisations are relying on their HR departments now more than ever. Furthermore, the HR teams have been thrust to the frontline to tackle head-on rapid digital transformation, hybrid work models, fierce talent wars and multigenerational global workforces. 

Long gone are the days when the role of HR was restricted to only recruitment, compensation and training & development. Now the HR ambit ranges from helping the workforce adapt to challenges, bringing resilient employees in the organisation and boosting their productivity to providing mental health support and creating a safe and engaging workplace. HR managers are given great emphasis to establishing an HR budget plan to create future-proof organisations in 2022.  

Make the Most of ‘Tech’tonic Shift

There is no denying that we are in the midst of a tremendous technological transformation and if anything, the pandemic has further accelerated it. To brave this tectonic shift, HR teams can expect to allocate a good portion of their budget towards adopting new technologies. For instance, investing in a new HRIS (HR Information System), an AI-driven 

talent acquisition software, deploying remote working tools or partnering with SaaS platforms. With a wide array of technology tools being offered in the market, this might be the best time for HR teams to upgrade their existing technologies and streamline their operations.

Better compensation, benefits & work culture

With the ‘Great Resignation’ raging on, HR teams across the globe are racking their brains as to how they can retain their employees. To curtail high attrition rates, HR teams should increase their budget compared to last year for compensation and benefits. Many employees are quitting their jobs for higher pay, flexible work schedules and better work culture. HR teams should keep an eye on creating an employee-friendly work culture and make the employees feel rewarded or valued. Thus, it is better to direct the efforts on employee retention than hiring by offering better compensation, insurance, paid time offs, bonuses and overtime pays.

Turn the spotlight on L&D

Learning & Development teams will continue to be the forerunners in helping the workforce navigate through uncertainties and challenges. As remote work and hybrid work models will continue in 2022, there will be a constant need to upskill the employees for digital tools and the latest technologies. HR teams can explore gamification and microlearning to provide these learnings and training. Whether it is training new employees or addressing skill gaps of the existing workforce, L&D will take a prominent position in the upcoming HR budget.

Employee Safety, Wellbeing & Engagement

While the pandemic may have sent a majority of employees home, it is still the responsibility of the HR department to ensure their safety and wellbeing. While drafting the budget for this year, HR teams can try to include activities that promote mental health, physical wellbeing and a safe work environment. For instance, HR managers can introduce health and wellness activities in between work sessions to engage the employees and help them combat stress and burnout. HR teams can also consider investing in enhanced employee engagement tools as a part of this year’s budget.

Gear up for talent acquisition

There is no doubt that the largest portion of the HR budget is occupied by talent acquisition and recruitment. With high attrition rates and hiring surges across the globe, all the leading organisations are fighting for the best talent. To win this war for talent, HR teams can invest in AI-powered Applicant Tracking Systems, SaaS solutions, offer lucrative perks and benefits, provide flexible work schedules and remote office setup and focus on employer branding. 

Key Takeaways

As the pandemic prolongs for yet another year, HR Teams across the globe are combating disruptive market forces, rapid digitalisation, hybrid working models and the ‘Great Resignation’. While the challenges are plenty, HR teams can overcome them by making changes to their budget. In 2022 HR teams should consider investing in the latest technology and upgrading existing technology infrastructure to streamline the HR operations and future-proof the organisation.