Gain The Upper Hand With These 5 HR Trends In 2023

Driving strategic impact through people is HR's true strength

HR leaders have been put to the test more than ever in the last few years. They faced challenges on all fronts due to the abrupt transition to remote/hybrid work, mass resignations, economic turbulence, and geopolitical turmoil.

Employee well-being, flexible work schedules, and DEI have been businesses' top HR priorities as they have struggled to adapt to tremendous disruption and change. As we approach the new year, we'll see many of these trends continue and develop as businesses focus on relationship-building, skill development, and communication.

New employee expectations impact employee attraction and retention, but HR leaders also need to oversee investments in technology, and people, promote a positive workplace environment, and reshape HR to be more digital and automated. 

Here are the top five HR priorities for 2023:

#1. Effectiveness of Managers and Leaders

According to a report by Gartner, 60% of HR leaders prioritize leader and manager effectiveness, and 24% claim that their approach to leadership development does not adequately equip leaders for the workplace of the future.

The expectations placed on leaders change along with organizations and society, which makes their jobs more difficult. Today's workplace demands that leaders be more sincere, sympathetic, and adaptable. These three demands signify a new leadership style, "human" leadership.

Human leaders are still hard to come by, despite HR leaders' best efforts to instill in them the commitment, courage, and confidence they need to answer the call. To be competent human leaders, leaders need dedication, courage, and confidence; however, HR's common approaches do not confront the obstacles preventing leaders from realizing their full potential. These challenges include their personal feelings of uncertainty, anxiety, and doubt. Recognize their humanity and deal with these emotional barriers head-on to help leaders fulfill the desire for human leadership and train them for the future of work.

#2. Change Management and Organizational Design

An article published on HRD states that organizational design and change management are top priorities for 53% of HR leaders. Political tensions, economic unpredictability, and digital transformations have contributed to significant disruption and change. CHROs are focused primarily on change management and organizational design since organizations are experiencing extreme change and uncertainty. 

According to a recent Gartner survey, 74% of employees were willing to support organizational change in 2016; today, only 38% say the same. This correlates with a lower intent to stay with the organization: Only 43% of employees who experience above-average change fatigue intend to stay with their organization, compared with 74% of employees with low fatigue levels.

The effects of change fatigue are obvious. HR managers must assist staff members in navigating change and minimizing its negative effects on their productivity and, more crucially, their well-being.

#3. Employee Experience 

85% of respondents to an IDC survey on employee experience agreed that better customer experiences and higher customer satisfaction correlate with improved employee experiences and higher employee engagement. Many HR leaders need help pinpointing the intrinsic moves employees need to make to advance their careers. Only one out of every four workers in a recent Gartner survey on employee career preferences expressed confidence in their career at their company, and three out of every four people looking for a new role are interested in positions outside of their company.

That route is less obvious now that professional experience is evolving. With less time spent in offices, career options are less obvious; employees need to prepare for forthcoming roles, and their current options need to meet their needs as people reevaluate the importance of work in their lives. Developing the most suitable careers for employees introduces new career imperatives for HR leaders.

#4. Recruiting

An article by Talcura states that recruiting will be a top priority for 46% of HR leaders. However, 36% of the participants fear their sourcing strategies will need to be improved to acquire the needed skills.

Despite general macroeconomic conditions, 50% of organizations anticipate a significant talent competition increase over the following six months. This calls for recruiting leaders to realign their priorities with current business requirements, plan for various potential outcomes in this dynamic market, and make data-driven decisions with great confidence.

Concentrate on these three tactics to endorse the strong talent and business results in the current market: build a sourcing capability based on intelligence, build onboarding for interaction and create a fair internal labor market.

#5. Future of Work

Hybrid and remote workforces are still presumed to be the "future of work." While this change is seismic for many organizations, it is only one component of the overall picture. The core of a future of work strategy is workforce planning, which is anticipating future talent needs and is a primary concern for HR leaders. However, today's workforce planning needs to be grounded in reality, and the approaches used to deal with the disruptive landscape could be more effective. Consider changing skills, a talent shortage, high turnover, and changes in the dynamic between employees and employers.

It's time for HR to step up, seize the opportunities that 2023 will bring, and redefine the function’s value proposition as a business leader and creator of competitor people’s capabilities. Driving strategic impact through people is HR's true strength.

Ajai Mehrotra is Sr. VP of Human Resources at Infopro Learning. With 20 years of experience in the IT & service industry, Ajai demonstrates a history of success in partnering with operational leaders to improve organizational effectiveness and efficiency through the establishment of a responsive HR Department and innovative HR approaches. Connect Ajai Mehrotra