As businesses are changing rapidly amid an increasingly global and complex work environment, HR is also expected to evolve from process to solutions and move from day to day operations to creating strategies that support the organisations' vision.

With global financial pressures impacting local economies, HR managers would have to demonstrate how their activities such as hiring, retention, engagement, talent acquisition etc. impact the organisations' bottom line.

It is expected that in 2012, manufacturing and services sector may face a slowdown in growth, and consequently hiring could be affected. However, the demand for skilled talent will continue to grow in other sectors. HR would need to pay close attention to employee performance and productivity.

Retention of top talent could turn out to be a concern for most HR managers. As experienced leaders and managers retire and a much younger generation takes over, there will be pressure for expedited leadership development programmes that deliver within months rather than in years. Another trend likely to gain prominence is to allow top talent to work without constraints of a physical office; which would improve retention thereby making recruiting easier.

Business networking communities will become a critical resource for finding potential candidates. Further, existing employees with professional relationships will be tapped for referrals. Social media tools would also be utilised to understand employee passions and skills that can help identify and track internal expertise.  

Employee health and wellness will remain top priorities in 2012. Initiatives such as workplace exercise, maintaining a healthy lifestyle along with work-life balance will result in less ‘sick' days and a more energised workforce.

With the growing awareness on sustainability, more customers would consider a business socially responsible if it is genuinely involved in their employees' economic and professional well-being.

The author is Gaurav Garg, MD & CEO, Tata AIG General Insurance