TOP HR TRENDS 2023

What are the top 10 HR trends in 2023?

1. Enter the world of virtual reality: Companies have had to get creative with their recruitment efforts post pandemic. Virtual job fairs and online interviews have proven to be successful for companies like Deloitte, demonstrating that you don’t need to shake someone’s hand in person to know they’re the right fit for the team.

 Watch out for Virtual onboarding, virtual meetings and in future even the metaverse!

As more businesses go remote, expect to see virtual reality used to give new employees a “virtual tour” of the office and introduce them to their coworkers. It’s like the Matrix for human resources!

2. EVP & Employee Experience: Businesses are beginning to recognize that happy employees lead to happy customers. More organizations might very well invest in employee engagement and retention programs in 2023.

Companies can personalize the employee value proposition by ensuring that as long as an employee delivers value. Personalization means that each employee may create a tailored relationship with where, how, and what work is done. .-Dave Ulrich 

It is a difficult time for both employers and employees due to inflation and a looming recession. Consider Google: they have an entire team dedicated to employee experience, which has resulted in high employee satisfaction and retention rates. However, we are shocked due to the approach they have taken in recent downsizing.

3. Artificial Intelligence and Machine Learning: Let’s be honest: no one wants to slog through a stack of resume on a Monday morning. That’s where AI and machine learning might come in to save the day. Although I have my reservations on the use of AI yet I see it as inevitable. We are going to take help of many meaningful AI applications in the near future.

Unilever, for example, has used AI-powered screening to quickly identify top candidates. (2022, Unilever)

4. Mental Health and Well-Being: The pandemic has had an impact on everyone’s mental health, and businesses are beginning to take notice. More organizations will provide mental health support and resources to their employees in 2023. Take a cue from Spotify, which provides employees with a “wellness allowance” to spend on things like fitness classes or therapy sessions. (2022, Spotify)

A recent survey from Aviva concluded that Work-life balance was the top priority for their employees in 2022. Work-life balance is going to be a priority once again post pandemic.

5. Diversity, Equity, and Inclusion (DEI): This trend is here to stay and will only grow in 2023. Companies such as Salesforce have made DEI a core part of their business strategy, focusing not only on hiring diverse candidates but also on addressing unconscious biases and creating an inclusive culture. (2022, Salesforce)

We need to capitalize on the social capital and become more inclusive.

6. Remote Work: Remote work or hybrid work is becoming the norm even when we are out of the pandemic. As more businesses embrace remote work, HR departments will need to figure out how to manage a remote workforce while also keeping employees connected to the company culture. Companies must have the appropriate technology and policies in place to support remote workers.

7. Flexible Working Hours: As remote work becomes more common, businesses will need to implement more flexible working hours to accommodate employees’ variable schedules. To give employees more control over their work schedule, companies such as Buffer have implemented unlimited vacation time and flexible working hours. (2021 buffer)
8. Employee Development: Businesses will invest in employee development programs to assist employees in upskilling and advancing their careers. This will include programs such as mentoring, training, and education. Companies such as Amazon place a strong emphasis on professional development, with programs such as Career Choice pre-paying 95% of tuition costs for in-demand fields. (Amazon, 2020)
9. Employee Engagement: In 2023, businesses will prioritize employee engagement as a means of improving productivity and retention. This will entail fostering an environment of open communication, recognition, and feedback. Employee engagement goes beyond the traditional definitions and is tied with organizational goals and purpose. Zappos is a great example; they have a culture book that outlines their values, how they work, and how they approach employee engagement. (Zappos, 2020)

10. Strategic HR: I would love to put it as the number one priority. More businesses will recognize the value of HR as a strategic partner in business decisions. This will entail HR becoming more closely aligned with the overall business strategy and contributing to the bottom line of the company. Companies such as GE place a strong emphasis on strategic human resources, with a Chief Human Resource Officer who sits on the executive team. (GE, 2021)

Finally, the ongoing pandemic and the shift toward remote work will have a significant impact on HR trends in 2023. To attract and retain top talent, businesses will need to adapt and embrace new technologies, prioritize employee experience, and prioritize diversity and inclusion.