Six HR Trends That Will Shape The American Workplace In 2023

HR professionals should incorporate these trends into their HR strategy

As HR teams create their road maps for 2023, they have a lot to consider. From flexible work environments to culture initiatives, employee training, and functional office space, the list can get long. The world of work and employee-employer relationships have fundamentally shifted over the last few years. We will undoubtedly continue to see more changes unfold as we progress through 2023.
 

After the past two and a half years of uncertainty, most companies have entered calmer waters with hybrid work. They now have clarity about how their employees' expectations and needs have evolved since pre-pandemic, but gaps remain between what employees need and what employers can provide. As we look ahead to 2023, several key HR trends will likely shape the industry's landscape.

Increased Cost-Saving Initiatives

With the skyrocketing inflation, employees’ wallets are feeling the pressure. To help retain staff during the labor shortage, HR teams will likely implement creative ways to support their employees in cost-saving measures this year. Beyond handing out increased cost-of-living adjustments, some of these measures could include increasing the employer contribution towards employee benefit plan premiums, providing commute-to-work reimbursements, employer-paid fitness memberships, or paid parental leave. For folks working from home, employers could offer stipends for Wi-Fi and energy bills or catered lunches and lunch deliveries.

Holistic Employee Well-Being

In the wake of the pandemic and amid a possible recession, employees everywhere are expressing work-related stress and burnout. There is no doubt a 2023 HR trend will be an increased focus on overall employee well-being to ease these stressors. Outside of their physical health, HR teams can provide benefits that address their financial, mental, and emotional well-being.  
 
We will also see many HR teams adopting a more holistic approach to well-being, as simply providing traditional health benefits and paid time off are the bare minimums. This holistic approach could include more mental health support from employers, programs to help employees with financial planning, and social initiatives that bring colleagues together after long periods of isolated work environments.

At Leadpages, we've recently rolled out a company-paid financial wellness program that offers our employees one-on-one professional financial coaching sessions. Providing financial coaching can help ease stress and improve employees’ quality of life. As a bonus to investing in your team’s well-being decreased financial stress will also lead to positive employee engagement and productivity.

Transparent Compensation Packages

Another trend expected to continue in 2023 is the fine-tuning of public-facing compensation packages. With the increasing competition for top talent, organizations are looking for ways to attract and retain employees through competitive compensation packages. Additionally, as more and more US states roll out legislation surrounding pay transparency, most recently including New York and California, companies are starting to disclose salary ranges on their job postings.
 
These pay transparency laws could cause headaches for companies and HR teams if they don’t take the time to clean up out-of-date, possibly biased, or discriminatory pay practices with existing team members. As such, there’s no doubt that a significant focus for many HR teams in the US over the next year will be revising their compensation programs, benchmarking strategies, and internal pay equity practices to remain competitive for talent and legislatively compliant.

Mirror Your Flexible Work Perks

The hybrid work environment is here to stay, it’s a permanent fixture in this modern work world. Employees everywhere have made it clear that they are unwilling to give up the work-life balance and monetary savings made possible by flexible work arrangements. HR teams will continue to integrate changes into employee policies and initiatives that support flexible individual preferences, as opposed to the traditional herd approach, when it comes to expectations such as in-office versus remote work, work schedules, perks, and benefits, to name a few.
 
One aspect of flexible work culture initiatives that HR teams will continue to focus and improve is providing perks and incentives for both remote and in-office employees, so one is not favored over the other when a true hybrid culture exists.

For example, at Leadpages, we provide an at-home office allowance for those who choose to be remote. We also provide a commute-to-work incentive program for those who prefer to come into the office. This program supports team members who like to come into the office by lessening the associated costs of commuting, regardless of their preferred mode of transportation. For companies looking to build a strong climate-friendly culture, this is a great starting point to reduce and offset carbon footprints while also promoting employee satisfaction.

Building Flexible Workspaces

Speaking of flexible work, 2023 will also introduce a renewed interest in flexible workspaces. An office redesign may be on the horizon for hybrid companies that still maintain physical office space. As we move away from more traditional pre-pandemic layouts of cubicle rows, assigned seating, and a possible lack of aesthetic and overall warmth, we will begin to see more open, comfortable, and flexible-use spaces that are more similar to the comforts of working from home. The thought behind this upcoming HR trend is to take away the vast difference between an at-home office and the traditional office, so it’s not such a shock to the system for those who are truly hybrid, making the in-office days more comfortable and enticing for team members.

Improving Leadership Training

Leaders have felt the growing pain over the last two years as many have been forced to manage hybrid or remote teams for the first time with zero preparation. They had to completely shift their strategies to engage and maintain the productivity of their teams. In addition to a new working environment, they also faced increased retention issues, team mental health concerns, and employees wanting career development support and physiological safety from their employers more than ever before. At this stage, in any industry, it’s not uncommon to see leaders and employees burning out. In 2023, companies should expect to allocate more resources to train leaders on the human side of leadership.

Training topics will likely include soft skills such as emotional intelligence, collaborative communication, and psychological safety, in addition to leadership training in navigating career development and goal-setting discussions with employees.

The Future of The American Workplace

In the coming year, it’s clear that HR professionals will continue to face several challenges and opportunities.

The uncertainty of the past three years has underscored the importance of mental health and wellness, and many organizations are looking for ways to support the overall well-being of their employees. In 2023, this could include offering resources such as mental health support, increased cost–savings initiatives, flexible workspaces, and more.

Attracting and retaining top talent is still top of mind, and there is also an opportunity to develop leaders through additional training.

With planning for the year underway, HR professionals should consider how they can incorporate and implement these trends into their HR strategy. Ultimately, we can add value to our employees—and our business—by embracing these trends in 2023.

Author Bio

Emily Hann is the Director of People and Culture at Leadpages Connect Emily Hann