2023 will bring a new world of work. Digital transformation has been a catalyst for many companies’ successes, and the relationship between employee and employer has changed.
The new year is the window of opportunity for HR to reposition its value proposition in the new post-pandemic world. The role of Human Resources professionals was crucial in helping organisations navigate the economic storm that followed the pandemic, the subsequent inflation surge, and slow down. If correctly enabled, best practice HR can have a tremendous impact on organisations.
We have identified the top HR trends in 2023 that we believe will help reshape the modern workplace.
Let’s get started!
The Coronavirus outbreak saw the emphasis on employee experience peak. Workers had to balance the need to survive a pandemic with achieving satisfactory work results. Unfortunately, this often led to stress, burnout, and lack of productivity.
Employers needed to make the employee experience priority and ensure their employees had all they needed to manage their responsibilities and remain safe. It’s about more than just giving workers the necessary equipment, the opportunity to work remotely, and providing wellbeing programs.
Companies were forced to consider employees’ personal and professional lives and how they affected their work. We used to think that work and private life were separate. But it is now clear that both are in danger. As a result, this year’s HR trends include enhancing employee experience by having financial, physical, and mental health support.
Humanising Manager-Employee Relationships
Employee expectations of managers have risen in the face of hybrid work environments. This has made management more difficult. With hybrid work systems now in place, HR professionals will focus on developing relationships with new employees and strengthening existing relationships with their veterans.
Like their team members, managers need additional support through training and resources to improve their soft skills. Traditional one-on-one conversations were focused on results and tactical planning. While results are significant, employees report that 31% (or more) of their discussions with managers were basic or poor, with little to no focus on personal/professional development or wellbeing.
Re-envisioning Hybrid or Remote Work Strategies
Although remote work isn’t new and has maintained its place on the HR trends list for the past few years, remote workers have recently become the majority. As a result, once thought of as a prediction, the topic has become hot and will continue to be so in 2023.
The benefits of working from home can be plentiful. These include the ability to keep your immune system healthy after you have received the COVID-19 vaccine. In addition, this type of work has been shown to make workers more productive and allow them to spend more time with their families. As a result, they also are more likely to take less time off.
However, not all professions allow you to work remotely. Some employers prefer to have their employees live on-site. Leaders will need to devise a compromise that benefits the company and their employees. Employers should consider a compromise that will please everyone, whether allowing their employees to work from home at minimum twice per month or letting them become involved in making the decision.
This trend can be considered one of the hottest HR trends. Many people felt at ease during the quarantine. They were able to learn new practices and skills. This was a reminder about how important it is to learn new skills or acquire more knowledge.
Companies also benefit from the knowledge as it leads to professional and personal improvement. As a result, learning will be a major HR trend in 2023. It will be a significant trend in 2023 as organisations invest in it to provide employees with new skills and personal and professional development.
It is advised that the means to learn should be available at all times. This is why many companies choose to create e-libraries and online workshops, as well as training courses.
Putting Out the Fire of Burnout
Another major HR trend in 2023 is preventing or countering employee burnout. Because it is one of the essential factors applicants consider when searching for jobs, employee wellness will be more prominent. In addition, you must attract quality talent to your company. This is why wellness programs focusing on employee happiness, health, and contentment will be increasingly essential in the future.
The Rise of Contingent Workers
The Great Resignation has seen vacant roles remain open longer as companies look for suitable candidates for each position. As a result, contingent workers, also known as freelancers or contract workers, fill the talent gaps by acquiring the skills companies require.
This HR trend will continue into 2023. Many former full-time employees are now working in contingent work. This allows them to choose the companies and projects they would like to work for and when and how it is convenient.
Both workers and employers are reaping the benefits of contingent employment. Employers and employees both value flexibility and control. Companies have the opportunity to hire contract workers temporarily. This allows them to evaluate the talent pool and save money on employee benefits, insurance costs, and more.
Remote Employee Engagement
Data shows that employees are less interested in work friendships, as work is becoming more individual and teams spend less time together. This disturbing HR trend is evident in the 2018 Gallup poll, which showed that employees with a friend at work are sevenfold more likely to be engaged in their jobs.
This data revealed that employees with work relationships are more likely to be engaged and thus reduce the likelihoods of burnout and attrition. Since COVID, casual interactions, such as team lunches and happy hours, are a great way to make work connections.
It is up to managers to ensure that there are regular check-ins, virtual team meetings, and other means to engage employees. Studies show that employee development is also an essential factor in driving employee engagement.
Increased Online Communication
Remote work is here to stay. Companies will need to improve communication with remote teams. Virtual meetings, recruitment, and onboarding could become the norm. This requires excellent communication processes.
Technology will be required to enable video interviews and continuous virtual communication. In addition, more employers will offer training to employees via digital communication channels.
The focus on employee retention will be one of the important HR trends in 2023. Companies will be more concerned about losing top talent to their competitors as the economy recovers from the pandemic. It is always more economical for companies to retain high-performing existing employees rather than constantly recruiting and training new ones.
Leaders look for ways to minimise and avoid costly tasks, activities, or consequences. They will therefore focus on increasing retention and creating strategies that enhance the employee experience.
The Inclusion of Soft Skills
Empathy, emotional intelligence and other essential soft skills are emerging as the new HR trends in post-pandemic countries. More than excellent technical knowledge is required. Therefore, recruiters will need to devise strategies to attract and find candidates who possess the soft skills required for the job.
Millennials, Generation X, and Smartphone Culture
The first generation is the largest in the workforce. However, their younger counterparts, gen Z, are expected to join them soon. Understanding these two generations will be one of the top trends in HR this year.
These generations have different priorities and goals than Baby boomers or Gen X. Employers will need to understand how to meet their needs to attract new workers. In addition, recruitment became more difficult due to the adverse effects of COVID-19, which forced recruiters to adapt their processes.
Young job seekers, who rely on their smartphones to search for work, are also impacting hiring. This is why recruiters must adapt job advertisements to meet these requirements and make them mobile-friendly.
The Outlook For HR in 2023
People seek empathy and connection to help them cope with the global crisis after experiencing constant danger, fear, uncertainty and doubt. Although this year will be challenging, there is a burning desire to make the world more human-centric.
The HR trends for 2023 reflect that. Employee wellbeing and safety will be the main focus, and companies can use technology to provide the best experience for their staff. In addition, managers will focus on strengthening their relationships with employees to foster growth and development as the employee experience takes centre stage.
In recent years, the world of work has undergone significant changes and will continue to change. As they face future challenges, companies will rely heavily on their HR teams (whether in-house or outsourced) and the talent and experience of the employees. Feel free to contact us for an in-depth consultancy on what HR Team can provide for your business to drive forward with confidence and high performance in 2023 and beyond.