2021 HR Trends That Are Here To Stay

None of the changes to the workplace need to be perceived as negative

Same old grind? No, never again. 

Most of us are still showing ourselves around the new workplace—“We keep the Zoom backgrounds over here near the gallon jug of hand sanitizer, and the children’s homeschooling station is adjacent to your desk”—but the realization dawned long ago that 2020 would be changing work forever. Many of the measures HR practitioners intended to be temporary at the beginning of the pandemic have settled in for the long haul, propping their feet up on the dusty desks of those offices that closed nearly a year ago. 

These four trends in particular are demonstrating real staying power.   

If you had even a few candid sidebar talks with employees this past year, you likely heard a variety of perspectives about how people felt about the work-from-home life. While some thrived in it (especially those able to forgo long commutes and to work more efficiently), others were practically waiting at the door for their offices to reopen. This taught us that there is no one-size-fits-all solution for employees when it comes to where employees work most happily and productively. Now that the pandemic has given employees more autonomy regarding what their workday looks like, the entire notion of work and place has become flexible in itself. 
 

Employees can now decide where, when, and how they work, and this concept of increased employee choice is likely to stay. For example, some relish the opportunity to get in a midday workout or to walk the dog. Others like to get a later start in the morning. Some enjoy the extra time with their children during remote learning; others are buckling under the strain of it. In 2021, companies will dedicate more time to identifying the “productivity profiles” of their employees and developing resources and tools to both accommodate and ensure high performance. This new shift will normalize self-direction by focusing on outputs and quality, rather than processes.

As the ability to work from anywhere continues to be the norm through Q1 and Q2 (many major organizations have extended remote working through the end of the year), employers will begin to reevaluate their compensation strategy to take into consideration how the cost of living in different cities will factor into pay. We can also expect to see an increased focus on benefits aimed at supporting and enhancing employees’ financial wellness, mental health and well-being, as well as a shift in where these benefits dollars go, as opposed to cost-cutting. For example, at WEX we’re increasing spend on childcare options for working parents, tuition reimbursement programs, and education for employees about which benefits will be most beneficial for them and their families. As for the benefits experience, we can expect to see a shift towards virtual open enrollment experiences. These were brought on by necessity in 2020 and a recent employer survey shows that some form of virtual open enrollment appears to be here to stay.

While it is difficult to predict what Capitol Hill’s approach to health care will be in 2021, there is growing support for greater price transparency for consumers and employers. A turbulent 2020 could give way to a year of opportunity for employers and benefits advisors in 2021. We can also expect to see a surge in HSA-eligible high-deductible health plans (HDHPs). Following the 2008-2009 U.S. recession, more employers turned to HDHPs as a way to cut costs for themselves and their employees. This lead to a surge in health savings accounts (HSAs) as well. From 2009-2011 HSA assets increased from $7.2 billion to $12.2 billion, according to Devenir.

Now that the watercooler chat is no longer an option for employees to converse at the office, employers must now devise new digital interpretations of those rituals that traditionally ensured employees felt seen, heard and appreciated. As part of this, we will see a greater emphasis on employers taking ownership of their employees’ psychological safety. The notion of bringing one’s “whole self” to work has become a popular way to refer to being unafraid to be seen managing other obligations and interests. In a post-pandemic workplace, organizations should expect employees’ expectations to continually adjust when it comes to dissolving barriers between work and home.

Persistent racial injustice has underscored the sense of urgency to install DE&I as a pillar of every organization. It has also called upon executives to take a stance, to provide far more than lip service on the matter, and to reconsider everything about how human resources departments relate with, understand, hire and protect our employees. With some employees working remotely and others in the office in 2021, managers will need to additionally pay close attention to any indication of bias they may start to exhibit to ensure they’re treating in-office employees and remote employees equally. HR should also encourage the founding of employee resource groups and initiatives that foster diversity and inclusion initiatives across the entire company. Most especially, Black employees and other underrepresented groups must be provided with a platform to showcase their culture, aspirations, and personal and professional brands.

For all the discomfort and heartache of 2020, none of these changes to the workplace need to be perceived as negative. When approached with compassion and objectivity, the workforce in 2021 can be expected to be more productive, happy, innovative, and wonderfully diverse.  

Melanie Tinto is Chief Human Resources Officer at WEX. With more than 20 years of experience leading global talent acquisition and management for large, multi-billion-dollar corporations, Melanie has worked with companies such as Hewlett-Packard, Walmart, Bank of America and Cigna. At WEX, she is responsible for developing and executing human resources strategy in support of the company’s overall business plan and strategic direction, specifically in the areas of succession planning, talent management, organization and performance management, training and development, as well as compensation and benefits. Visit www.wexinc.com Connect Melanie Tinto