Many people have predicted that the industry will recover from losses over the next 2 years by 2022. Startups have increased layoffs, contrary to these predictions. They are lowering their hiring rates. Warum? Here are some reasons.
Some reasons of Slowing Down in Hiring
Although many of these firms have been able to generate revenue, few are achieving profitability. These businesses have been under pressure from investors to prove they are financially viable. To achieve this, companies have reduced their headcount.
This slowdown and bouts of downsizing are not surprising, as these startups were highly funded when hiring irrationally last year. They were expected to rationalize this behaviour.
To build their businesses, most startups rely on outside financing. Foreign investors make up the majority of their funds. These investors are hard hit by the financial crisis and disruptions caused by the Ukraine-Russia conflict.
In 2015, startups that had received substantial funding were expected to grow much faster. They were not able to achieve that expansion. This is why the startups ecosystem has experienced massive layoffs.
According to an HR professional who works closely with startups to help them grow, there will be more layoffs in the future. The recovery process from this disaster will take approximately a year. He continues.
Startups are slowing down in hiring but are quick to make massive layoffs. These are the main reasons for this disaster. The inefficiency of the hiring process is another reason.
Startups are not able to afford to hire unskilled workers if they do. Implementing a Recruitment System is a great way to solve this problem. You can use a HRMS Software to increase your recruitment efficiency. Applicant Tracking System, Resume Parser, and Interview Tracking.
These 6 Trends are likely to Shape HR in 2022
The industry has just emerged from a pandemic. Most likely, two years of losses. The HR department has reached an all-time low.
These trends are most likely to be a description of the current HR situation in 2022 if we were to forecast the future of Human Resources.
Flexibility – Flexible Work Hours and Modal
Even traditional organizations are now using hybrid working methods. This is because of the impositions imposed by the pandemic. The talent and labour shortages have also had an impact. Employers feel more confident that work can be done, even if there are drastic changes in the work environment. This allows HR to be more creative. This could mean allowing employees to choose their work hours, creating a four-day workweek or following another path. There are issues that hybrid working requires attention to. These challenges can be found here.
Stress on employee mental health
More than ever, employees need to be concerned about their mental health. Although questions regarding the COVID-19 vaccine may still be relevant in 2022, some employee benefits will need to address other healthcare issues. Experts have speculated about the role of virtual care in improving healthcare delivery, especially since patient populations were more exposed to it during the pandemic. Adam Stavisky (Walmart’s senior vice president for U.S. Benefits) stated that the demand for quick care access would increase over the next year.
Performance Reviews – Informal
Managers have had the opportunity to see a more casual and human side of their staff over the past two years. Managers have been able to hear dogs barking while on video calls. They also learn patience as their colleagues care for elders and kids. This has helped to remove hierarchical barriers. This has also allowed flexibility and informality to be promoted in other job areas, such as performance management.
Pay Transparency and Parental Leaves
Pinterest recently introduced a NICU benefits and extended its parental leave by six months to the birthing parent. This is a wonderful example of parental leave’s importance in our modern age. Employees also need to know the pay transparency. Employees would like to see the breakdown of their salary. An employer should not prevent an employee from finding out.
Demand for Organized Labour
Organizations want to recover all losses after two years of hard work. Employers wish only to hire skilled workers to do this. Employers might be inclined to do this. This means that organized labour is in high demand.