7 HR trends to watch in 2021

13/05/2026

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The new year has arrived and despite the challenges of the old year, leaders in human resource management and development have a lot to look forward to in 2021!

2020 was a year where the world faced a major challenge, Covid-19, which caused significant disruption to the global economy. Among them, human resources was perhaps one of the most affected sectors, dealing with labor surpluses and shifts in work methods. It is evolving and adapting quickly, changing the way we experience work. Faced with this reality, experts are taking this opportunity to reflect on trends for this year and beyond.

For businesses to achieve sustainable growth, leaders must first find solutions to optimize operations and corporate governance. This article will help businesses see how HR industry trends are shifting in 2021, enabling them to plan and adapt accordingly.

1. Focusing on People-Centric Innovation

Departments cannot operate effectively when their people are not taken care of. HR’s responsibility is to focus on developing individuals, or more broadly, everyone on the team. As a manager, harmoniously managing many people within the same group is not easy.

When people are encouraged and their morale is boosted, they will strive to bring their best to the workplace and want to stay with the company long-term. And when employees are more engaged, it means they are truly ready and enthusiastic to strive to achieve the company’s common goals.

Therefore, employee wellness will be an HR trend and a goal that companies need to aim for in the new year 2021. The HR department will need to focus more on people management skills to build an ideal corporate culture and deliver desired work results.

If you are managing and leading a team, consider the following questions from Tracie Sponenberg:

Are you leading with empathy, compassion, and love?
Are you having the tough conversations about diversity, equity, and inclusion? And more importantly, what are you doing about it?
Are you prioritizing the mental health of your employees? Not just physical health, but also mental health, financial health, and social connections.
Are you giving and receiving regular feedback?
Are you a fierce advocate, willing to put your people before the business?

2. Automating Key Functions

The impact of the disruptions in the past year has brought a series of unforeseen difficulties and challenges to HR teams. Above all, the wave of post-Covid-19 layoffs has left departments short of human resources and resources to get work done.

Faced with changes in work models and human resource management, automation software has been adopted to improve daily processes, reduce previously cumbersome functions, making work flow smoothly and enhancing efficiency.

Thus, the application of advanced technology in automation will continue to be an inevitable trend in 2021.

3. Expanding Workplace Flexibility

According to Micole Garatti, B2B Marketing Director at Fairygodboss: “Research shows that flexible and remote work opportunities are now the second most important factor job seekers consider when evaluating a new position—after compensation. If organizations truly want to attract and retain talent, they will adopt more people-centric and friendly policies, for example, focusing on results rather than hours present at the company.”

In 2020, most organizations were forced to adapt to new ways of working—working from home. Working online became the top choice for businesses, with new procedures added to interact with employees and major adjustments made to serve customers. This is considered an effective way to maintain company operations and create a work-life balance.

Flexible work arrangements have gone from an optional perk to a requirement for many job seekers. Now, employees have seen the benefits of this type of work and are eager to continue it in the future.

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