From advancements in technology to changes in industry practices, human society is constantly evolving.
It is important for HR leaders in every organization to be in touch with these developments and adapt their strategies accordingly.
Their ability to do this effectively will determine the type of employees that they attract and how well their companies are positioned to ride the waves of change instead of being swept out of relevance.
In recent years, different kinds of global crises, social upheavals, pandemics, economic slowdowns, and changing market policies have significantly changed the way employers and employees think about work.
As 2023 draws closer, you need to know how to respond to these new developments in the world of work if you are serious about enhancing the productivity of your workforce, increasing your company’s profitability, and creating an environment where everyone thrives.
In this post, we show you the top seven HR trends to consider as the new year rolls in.
It is important that you think through trends and understand what to expect in the new year, even as you explore necessary adaptations to improve business outcomes.
7 HR Trends That Will Shape 2023
1. Diversity, Equity, and Inclusion (DEI)
In the aftermath of several discriminatory events that have taken place in the past years, such as the George Floyd murder, the cry for a culture that embraces diversity has never been stronger.
This cry has continued to reverberate through every sphere of society, including the world of work. Therefore, it is no wonder that experts see the implementation of a DEI-centered work culture as one of the biggest developments that will define HR in the new year.
It is important for HR leaders to set up programs and policies that not only promote equality and inclusion for all employees but also encourage diversity. This means identifying veiled biases and dealing with unfair hiring and promotion procedures that hamper business growth.
Implementing these changes will transform the lives of marginalized employees, thereby driving excellence and innovation at work while improving the company’s prospects.
2. Reskilling and upskilling the workforce
Improving the quality of the workforce is an HR trend that will continue even in the new year.
Due to the very competitive job market or a shortage of time to search for the right talents, many companies have had to settle for less qualified employees.
Consequently, they will need to focus on upskilling and reskilling their workforce. This will help employees flourish in their positions and contribute effectively to business growth while also reducing turnover rates.
Upskilling employees means teaching them new skills. Reskilling involves acquiring new skills for a different role. Upskilling the workforce gives employees better prospects for career growth, while reskilling helps businesses develop a more versatile workforce.
3. Remote and hybrid work options
According to a McKinsey study, the COVID-19 pandemic has pushed companies over the technology tipping point and propelled digital transformation in the workplace sector by as much as four years!
As a result, ideas like remote and hybrid work, which weren’t as popular before the pandemic, are now very important to many people when considering a job offer.
LinkedIn reports that more than 50% of job applications submitted on the platform in February 2022 were for remote positions. This is in spite of the fact that remote positions made up just 20% of all paid job postings in the period under review.
Even though the data is about the United States, the popularity of remote and hybrid work is growing around the world.
This highlights the fact that while a large percentage of company leaders are still warming up to the idea of hiring off-site employees, many potential workers are becoming more open to the idea of working from home.
So, experts think that in 2023, companies will make their work arrangements more flexible in order to attract a more qualified workforce.
As part of this new development, employees and employers might have to find a middle ground that satisfies the expectations of both parties.
A trend that is closely related to this is the evolution of a workforce that includes both full-time workers and freelancers, or gig workers.
4. Well-being and wellness programs for employees
In the early phase of the COVID-19 pandemic, burnout was pervasive. The situation was expected to improve as the worst impacts of the pandemic faded, but the reality is far different.
Complaints of burnout appear to be increasing by the day. Because of this, employees are much less productive, business growth is painfully slow, companies keep losing their best workers, and organizations are always in danger of going out of business.
Therefore, in the new year, experts see companies implementing policies that address this problem. This includes creating programs that encourage wellness and foster good mental health among employees.
These changes will make workers more satisfied with their jobs. They will also be more productive, and this will directly impact the growth of the organization.
5. The use of AI in HR
Artificial intelligence (AI) is already being used to enhance various HR processes. Experts believe that this will continue into the future, and for good reasons.
The use of AI will, among other things, make HR managers’ jobs much easier and give them more time to focus on important aspects of hiring and performance management.
Recruiters will be able to automate time-consuming and monotonous tasks like analyzing resumes and onboarding new hires. These tasks will be done more quickly and accurately.
Using AI-powered data analytics tools, leaders and decision makers in the HR sector will also become more aware and objective. For example, it will be easy for them to identify similarities between employees who have left the company and to spot staff members who may be sitting in an exit interview soon.
With such data, they can easily make strategic decisions and take actions that mitigate risk for the business.
6. A positive work culture
One reason this is an HR trend that will continue even in 2023 and possibly beyond is that potential employees continually seek organizations with appealing employee benefits and bonuses, a solid reputation, and a welcoming corporate culture.
No one wants to work in an environment that has opposing values to theirs, is filled with negative people, or is inimical to growth.
In light of this, businesses that seek to attract and retain top talents in the new year will need to up their game when it comes to fostering a positive work culture.
They must be careful to clearly articulate what it is like to work for their organization, the types of potential candidates they are seeking, and why anyone would want to work there.
7. Implementing ESG programs
The world is beginning to pay more attention to environmental, social, and governance (ESG) factors as three pillars used to measure a company’s commitment to sustainable and ethical business practices.
Many socially conscious investors, consumers, and employees are unwilling to invest in or work for an organization whose sustainability values do not align with theirs.
Already, statistics show that 83% of employees believe that their companies are not doing enough when it comes to tackling sustainability issues.
A recent survey also found that 83% of employees are more likely to work for a company with environmental policies, while 37% would not work for a company with poor environmental initiatives.
So, it is clear that companies that desire to attract and retain top talents will need to double down on their ESG strategies in the new year.
They will have to be more aware of their responsibilities to the environment and society, as well as the need for transparency and accountability in how they run their businesses.
Closing Thoughts
Considering the vital role that HR plays in every organization, it is important to recognize that these trends do not affect the HR department alone; they affect the entire organization. [Click to tweet]
Most of the HR trends that are expected to shape 2023 will be focused on people and aim to keep the workforce more motivated, involved, and diverse.
Company leaders and HR managers must work together if they want to make these changes in their organizations so that they can facilitate business growth and expansion.