Top 5 HR Outsourcing Trends in the UAE in 2022

Author: Sonal Khandelwal
Sep 05, 2022

The HR industry has undergone myriad changes over the past couple of years. From a mindset shift towards diversity and inclusion to forced lockdowns and remote work, operations within the HR departments have dramatically changed since the global pandemic hit us. While 2021 was about reinventing human resource solutions to solidify its new roles, the year 2022 is about making key upgrades that push the boundaries of HR to create more value for organizations in the UAE.

While there has been an increasing demand for outsourcing HR functions among small and mid-sized enterprises (SMEs), a few emerging trends will be observed across HR consultancy firms and in-house HR departments of businesses operating in the UAE. Ideally, these trends will set the standard for human resource management, allowing specialists and business owners to make better decisions to improve operations in the future.

Adopting a Hybrid Work Model

Since the pandemic, the working world has been looking for flexibility at work – an important aspect that no longer can be ignored. When lockdowns were enforced, companies were forced to entertain the idea of changing their working models, which gave birth to the concept of the ‘hybrid work model.’

The model prioritises flexibility by including remote work in the current in-office work plan. Instead of reporting to the office for work, employees will also have the privilege to work from home. With the ongoing Russia-Ukraine crisis, businesses have realised that adopting a hybrid model works in favour of their business operations, allowing things to keep running regardless of the state of the world.

Creating a Healthy Work Culture for Employees

Previously, human resource management in the UAE was more about the coordination and management of employees. In recent years, staff outsourcing firms have taken a more holistic approach by taking the satisfaction and well-being of employees into close consideration.

Organisations across the globe have observed a remarkable increase in employee satisfaction by focusing on establishing a healthy work environment. A workplace can be considered healthy and safe when efforts are channelled to meet the employees' physical, mental, and financial needs. As a result, HR teams will use increased communication channels, engagement tools & surveys, and webinars as essential strategies to promote a healthier workplace lifestyle and keep employee morale high.

Mental health issues became common when the pandemic hit us, and HR departments are taking it more seriously by encouraging employees to seek help whenever they’re overwhelmed, including access to the best social health and community services.

Employees want to feel understood and valued

HR leaders should design employer-employee relationships and employment deals to ensure employees’ demands are heard and valued. HR subfunctions across all levels have a role to play in certifying the Employee Value Proposition holistically centres employees as people.

Focusing on DEI (Diversity, Equity, Inclusion)

DEI can be considered one of the latest strategies being implemented in HR teams across the globe. With diversity, equity, and inclusion at its heart, this approach will actively address issues that employees experience, such as harassment, unfair wages, bias, discrimination, and so on.

Nobody can deny that these factors plague the workplace environment when not properly monitored. Keeping the rate of cross-cultural employees in mind, virtual and in the office, HR teams will channel active efforts in this direction, knowing that issues related to discrimination and biases won’t be uncommon.

Investing in HR Automation Tools

There was a time when people were apprehensive about moving business operations to the cloud. Fortunately, that attitude has changed over the past few years.

Because automating HR tasks can raise efficiency, improve security, and decrease the risk of human errors. HR firms in the UAE are progressively automating HR tasks to save time for more complex and valuable tasks. Additionally, the data and insights from automation tools allow firms to make informed decisions to manage talent better.

Wrapping Up

2020 was the year that pushed the HR industry to rethink its conventional processes and look at managing human resources from a new perspective. From paying attention to employees' mental health to adopting automation and AI analytics, staffing companies will do what it takes to keep up with the current times and help transform organisations for the better.