Technology, Employee Engagement And Ethical AI Will Shape The HR Industry In 2023

4 trends to watch out for

In 2023, the HR industry will be laser-focused on new and better technologies and even more focused on employee engagement and the employee experience. At the same time, HR professionals and their IT teams will continue to address the challenges around DEI, hiring and retention, and the ethical use of AI-hiring solutions. Here are four trends that will shape the HR industry in 2023:

1. AI Hiring Regulations Will Come Into Focus 

Artificial intelligence and analytics have become effective tools in removing bias during the talent acquisition process. Yet “black box” algorithms have the potential to discriminate against various protected (and unprotected) classes and compromise individual privacy. As a result, states and localities are proposing bills that monitor how these algorithms should be used (i.e. New York City AEDT law). These various bills can be hard to follow, causing confusion among employers. As more federal guidance is introduced, as with the White House Blueprint for an AI Bill of Rights, we expect to see increased clarity around legislation and how it is intended to enable the harnessing of AI for the good of humanity. 2023 will bring meaningful steps forward with laws encouraging transparency, fairness, and the protection of individual privacy.

 

2. Intelligence Platforms Will Help Navigate a Chaotic Labor Market

Over the last year, there has been conflicting data with some businesses reporting many openings, but difficulty filling them. Others have experienced a flood of applications. Modern hiring platforms allow talent intelligence to be deployed flexibly to support shifting employment market needs. Moving into the new year, more businesses will see the value of adopting these agile, automated intelligent hiring platforms. With pre-employment assessments and interview technologies, these platforms will help them address both candidate scarcity and abundance and be able to shift between the two quickly.

3. Renewed Focus on Employee Engagement

Whether you call it the Great Resignation or Quiet Quitting, worker disengagement and dissatisfaction are at an all-time high in nearly a decade, according to recent research from Gallup. To offset this, organizations can increase pay, improve employee well-being, create a compelling mission, and help workers build interpersonal relationships. On top of this, they can save millions of dollars by adopting scientifically designed selection procedures to predict long-term employee fit and retention. We expect to see a resurgence in tried-and-true methods of engagement building in 2023.  

4. In a Competitive Hiring Environment, the Candidate Experience Will Be Key

As the labor market continues to be in turmoil in the coming year, hiring teams will need to build brand-rich candidate experiences that include opportunities to demonstrate their skills through ethical, science-based job previews and/or simulation assessments and offer personalized feedback – in as close to real-time as possible – while also providing an opportunity for the candidates to experience what the job is really like. The candidate experience has never been more important, with companies competing for workers in a historically low unemployment labor environment. Organizations must work harder to build engaging and informative hiring processes and design jobs that will appeal to motivated new hires over the long term.  

Eric Sydell is the EVP, Innovation at Modern Hire. Eric oversees all research and product innovation initiatives at Modern Hire, including the data science-focused Labs team. He is passionate about applying machine learning, and deep learning in particular, to candidate data to more effectively match candidates with career opportunities. Eric is highly motivated to show the power of these new AI-based technologies and guide them to ensure they benefit individuals and organizations. He writes extensively on and has spoken around the world on these topics. Eric previously served as Executive Vice President, Innovation at Shaker International, of which he was also a founder. Connect Eric Sydell