Strategically placed hardfacing material near the shank end of a drill bit above the transition edges provides additional protection for compensator areas and the upper leg surfaces of drill bits during updrilling and/or backreaming operations. The strategically located hardfacing is typically passive in the normal drill mode, but active in the updrill drilling mode and/or back reaming. Alternative designs including other strategic material placement, the formation of hardfacing materials in tooth/wear design shapes, bimetallic gage, graded composite hardfacing materials, recesses or cavities at edges of the outer diameter, and various methods of applying the material also may be employed.