Demystifying innovation: What does 2022 hold for HR?

The old adage of innovation being born out of chaos has never been truer than in the past year. The COVID-19 pandemic upended our lives and our working patterns – however, it also led to organisational revolution. New Zealand was lauded at the start of the pandemic as having handled the crisis in the most effective manner – with strict lockdowns and mandated WFH orders. All of these changes forced employers and their HR teams to think differently – to adopt new practices and find solutions to unforeseen problems. HRD recently conducted extensive research as part of our New Zealand Innovative HR Teams Awards, looking at how HR leaders across the country managed disruption in an innovative way – and examined what the future of HR will look like in a post-pandemic New Zealand.

Psychological wellbeing

Mental wellbeing took quite the hammering over the past 12 months. Lockdowns and remote working led to increased depression and anxiety amongst employees. As such, HR teams had to look for innovative ways of safeguarding worker wellbeing – whether through technology or increased communication strategies. During our research, HRD found that employee mental wellbeing was one of the most pressing concerns for HR leaders in New Zealand – specifically around how to implement mental wellbeing systems in remote work. Speaking to HRD, Rose Johnson, HR director at DHL Supply Chain, and one of HRD’s Innovative HR Teams Awards winners, revealed that more needs to be done in developing mental health solutions.

“There’s more recognition by organisations to ensure appropriate systems are in place to support the mental wellbeing of employees in addition to the standard employee assistance programmes,” she told HRD. “HR plays a key role to deploy innovative digital solutions such as wellness apps, partnerships with health insurance providers and learning and development programmes for leaders.”

While wellbeing is nothing new in HR, the pandemic did highlight the need for advanced, remote, systems. Investments in employee wellbeing tools increased in lockdowns, with employers looking for vendors that offered accessible, easy-to-use apps to inform their mental health strategies. Looking ahead to 2022, this trend is only set to continue.

“In the industry I work in, employee wellbeing is one of the primary areas of focus,” added Debbie Kirby, GM people & culture – transport at Downer, and one of HRD’s Innovative HR Teams Awards winners. “It’s going to need deliberate attention and innovative strategies to ensure that we have a healthy engaged workforce to meet our work demands. There’s a lot of work going on in this space and I believe we are going to see some game changing ideas being implemented in the near future.”

Authentic DEI

The pandemic wasn’t the only global incident to rock our workplaces in the past 12 months. Employee activism is on the increase, with workers aligning themselves with companies that hold true to their core beliefs. A recent report from Herbert Smith Freehills found that 61% of senior executives believe employee activism is yet to rise further – with issues such as Black Lives Matter, global warming, and unionisation efforts drawing mass attention in NZ. HR leaders need to review their DEI policies to ensure they’re in-keeping with employee sentiment – or risk losing top talent.

“There’s a heightened awareness of the significant benefits of having a culture that promotes and genuinely embraces diversity and inclusion within the workplace, from both and business and social perspective,” added Johnson. “HR’s role in this area is critical from education perspective as they lead the culture change in this space from a learning and development perspective.”

According to McKinsey, two thirds of employees reassessed their priorities and their purpose throughout the pandemic – with Millennials three time more likely than their counterparts to revaluate their career choices. With this in mid, HR leaders have to commit to developing more authentic DEI strategies this year – it’s the only way to keep a hold of your people.

Data mining and cybersecurity

New Zealand is currently undergoing a skill shortage – one which is dramatically impacting organisational recruitment efforts. One of the sectors most affected is, paradoxically, the one which is growing in demand – cybersecurity. Our research highlighted cybersecurity as a main concern for HR leaders moving into 2022. With most organisations adopting a hybrid model, the need for up-to-date, secure tech is paramount.

“I think the big question is around cybersecurity and how that fits in with innovations in the digital space,” explained Debbie MacDonald, General Manager - people & culture at GPC Asia Pacific, and and one of HRD’s Innovative HR Teams Awards winners. “For years we have had technological innovation, but I think that cyber security considerations will mean a move towards smaller, faster innovations.”

Demystifying innovation

Perhaps one of the most interesting aspects to emerge from our research was the need to reassess what innovation actually is. Our data found that some HR leaders are newly focused on upskilling employees in the field of innovation – helping them to understand how their actions can drive real organisational change.

“One thing we’ve really focused on is demystifying innovation,” MacDonald told HRD. “With the pandemic, people have been making small incremental improvements that have had a big impact on the organisation. So, we’re looking to highlight those stories to encourage more of it. Sometimes it’s hard to get cultural movement on things, and innovation is no different. People say ‘we don’t have the time’ or the resources or the systems to support that, but you put people in circumstances that are different – as in lockdown and COVID-19 - and you see a mindset shift. We are still seeing larger shifts but those aren’t the pieces of gold. It’s the small changes in the way we do things, that’re coming from the grassroots, that are re-framing how we look at innovation.”

As for the future, it’s clear that companies which choose to invest more in innovation and technology will be the ones to thrive in a post-pandemic world. Employers need to stop thinking about innovation as an end goal – it’s not a start-stop process. Innovation should be continual – it should be built into your organisational strategy just as much as LGBTQ rights or mental wellbeing or employment law is. Take the time to allow your teams to be creative, to find solutions in innovative ways. Afterall, you never know when you’re going to need a lifeline.

Discover who made the exclusive winner’s list here.