As is, companies have undergone a dramatic shift in how they operate as expectations from the workforce have also significantly altered. Businesses that are unable to pivot and adapt to these new trends will have difficulty managing their workforce.

Having experienced the benefits of working remotely, many from the workforce are now demanding for a more flexible working arrangement. In fact, most have shared how their productivity levels have increased over the last two years despite not working at the office. Hence, companies are now forced to adopt new workforce management styles that allow their employees to work from anywhere.

Retention of talent is another aspect that businesses must also tackle. Right now, companies have to create an attractive work culture to retain existing employees and, at the same time, attract new talent. Undoubtedly, employees are also looking for better work-life balance arrangement and improved engagement within their workplace.

Key Trends and Challenges:

1. Adopting Flexible Working Arrangements

In one survey that The Strait Times conducted around 2020 saw eight out of 10 employees preferring to work remotely or have flexible working arrangements. On the opposite end of the spectrum, only one in 10 respondents wanted to return to the physical workplace on a full-time basis.

Another study from the ADP Research Institute, "People at Work 2022: A Global Workforce View", reported how, among workers aged between 18-24 years, 71% would consider quitting if their employers required them to return to the office full-time. However, this number drops slightly to 61% among 35- to 44-year-olds and 56% with 45- to 54-year-olds.

Companies must adopt flexible working arrangements where employees can split their time working from home and at the office. As hybrid arrangements now become the norm, employers must consider this a critical pivot to keep employees satisfied. Of course, this also largely depends on the industry of the business and the requirements of the workplace.

2. The Great Resignation

The Great Resignation is an ongoing economic trend that had groups of employees voluntarily quit their jobs. Notably, this phenomenon began amid the pandemic and Singapore's workforce felt its impact in short order. It also quickly affected the workforce for neighbouring Malaysia.

In fact, a recent study from SAP found that 62% of small- and medium-sized enterprises (SMEs) noticed an increase in the number of employees leaving their jobs. This inevitably led to a higher level of difficulty in retaining and attracting talent to these businesses.

Management will then have to figure out why employees are leaving the organisation and what they can do to address this negative growth trend.

3. Diversity, Equity, and Inclusion (DEI)

More emphasis had also been placed on diversity, equity, and inclusion as frequent discussions on topics of discrimination in the workplace have surfaced in the last few years. In addition, workplace discrimination, such as ageism and racism, are now being taken more seriously.

Notably, the introduction of the hybrid working model, which allows employees more freedom to work remotely, brought about new opportunities and obstacles for everyone. Due to the automation of work processes, those with required skills saw an increase in their employability. This resulted in older employees who do not have the requisite skills being phased out as they cannot keep up with new digital workflows or embrace the concept of working remotely.

Another issue of inclusion being exacerbated is that employees who are more present in the workplace will be seen as more competent than their counterparts who work remotely. While not as widespread, this bias can grow when there is no oversight. In fact, without proper personnel engagement, those working remotely are likely not in the running for growth opportunities.

4. Talent Retention

Talent retention is now a priority for many organisations as talent is scarce in certain sectors. This proved to be a challenge as it became more difficult to source for new staff. One positive outcome is how businesses now offer higher salary packages and attractive employee benefits to lure and retain talent.

There is also a shift in the perspective of the workforce. As they have re-evaluated their priorities, the workforce now has a stronger desire to be in control of their work life. Employees are even willing to leave their companies for lower pay, if the new role offers them more flexibility and better work-life balance.

As such, companies now have to reconsider if they are offering their employees enough to keep them in the organisation. Relying solely on financial incentives will only be feasible for the short term and put more pressure on the company's finances.

If anything, businesses will have to understand the needs of their employees and properly address them. This will greatly increase the chances of retaining current employees within the organisation.

How Access HRIS address these 2022 trends and challenges?

1. Better management of flexible working arrangements

• Businesses are using Access HRIS to manage working arrangements even if they or their employees are not physically in the office. This also allowed management to ensure that processes are still being executed smoothly.
• The HR department can also ensure that salaries are paid on time and team managers can approve employees' leave applications promptly.

2. Build a stronger sense of inclusion

• Management can use the Performance Appraisal module to commend employees for their excellent performance. Giving employees a sense of recognition will promote a sense of inclusion and reinforce a sense of belonging with the company.

3. Show appreciation to employees

• Superiors can engage their employees using the Thanks function. This will allow workers to feel appreciated for their hard work even as they are working remotely.