The year 2021 marked a significant departure from conventional norms, heralding the dawn of a post-pandemic era where remote work became the new normal. This paradigm shift not only transformed our daily lives but also had a profound impact on the landscape of international human resource management, leading to a recalibration of strategies.

In this article, we delve into the noteworthy global trends shaping HR practices in 2021.

1. Embracing the Remote Work Revolution

A recent analysis by Gartner indicates that 48% of employees are likely to continue working remotely post-pandemic, marking a 12% increase from the pre-pandemic era. Correspondingly, 74% of CFOs express intentions to maintain or expand remote work options. HR's role during this transition was crucial, focusing on ensuring a smooth shift to virtual work environments and overcoming unforeseen challenges associated with virtualizing entire technological infrastructures.

2. Work and Wellness Prioritization

With a shift towards employee-centric strategies, personal well-being has taken center stage. According to Gartner's 2020 ReimagineHR Employee Survey, there is a 23% increase in reported better mental health when employers foster deeper relationships. Holistic support correlates with a 21% boost in productivity among high performers, emphasizing the importance of building meaningful connections and addressing mental health concerns for enhanced employee satisfaction and productivity.

3. Progressive Benefits Administration

Modern job expectations, especially among the younger workforce, demand more than just a paycheck. Employees seek open work cultures, mentorship opportunities, flexible schedules, and progressive benefits such as extended family time, remote work options, and enhanced leave policies. Integrating these elements into the workplace is imperative for mutual benefit.

4. Empowerment of Employees

Shifting away from viewing employees as liabilities, companies are now recognizing them as valuable assets. HR teams are actively involved in empowering employees through skill development, professional courses, and avenues for updating technical knowledge. This approach enhances individual potential, preparing employees to tackle future challenges.

5. Globalized Talent Acquisition

The globalization of talent acquisition gained prominence in 2021. Remote work dissolved geographical barriers, enabling companies to tap into a diverse and expansive talent pool. This shift reflects HR's ongoing commitment to securing top-tier talent regardless of location.

6. Emphasis on Diversity and Inclusion

The globalization of the talent pool facilitates diversity and inclusion, transcending barriers of nationality, race, and language. This inclusive approach not only unifies the work environment but also contributes to global business growth.

7. Inclusion of Contractors and Part-Time Employees

The rise of remote work and globalization prompted a reevaluation of traditional employment models. HR is now embracing the inclusion of contractors and part-time employees, necessitating careful management of distinct policies and contractual norms for both employment categories.

8. Cross-Border Compliance

Global team integration comes with challenges related to local laws and compliance. Tools like Employer Of Record (EOR), such as Remoly, facilitate the management of cross-border compliance, ensuring adherence to diverse legal frameworks.

9. People Analytics for Strategic Decisions

Unlocking the potential of HR data through people analytics has become a strategic imperative. Organizations excelling in people analytics, according to DDI, are 3.1 times more likely to outperform their peers. Interpreting collected data informs more informed and strategic decision-making.

10. Integration of AI in HR Operations

The integration of AI in HR operations has become a global trend, streamlining tasks, and enhancing decision-making processes. The optimization of the human-automation combination is poised to transform the future of HR.

11. Adoption of Cloud-Based HR Tools

In the remote work era, cloud-based HR tools, such as Professional Employer Organization (PEO) tools, have proven indispensable for virtual onboarding and simplifying HR processes for both employers and employees.

In Conclusion

The year 2021 witnessed a paradigm shift in global HR practices, emphasizing employee-centric strategies and leveraging technological advancements. As businesses continue to navigate a globalized work environment, embracing these trends and utilizing tools like Remoly can facilitate smoother transitions, align with international HR norms, and pave the way for a successful future. Contact us to explore how Remoly can support your journey in this evolving HR landscape.