There’s a common thread running through the HR trends for 2023. A renewed focus on the “human element” of human resources has surged to the forefront.
Work-life balance. Employee engagement. Flexible work models. Diversity, equity, and inclusion. In today’s business environment, factors like these are making and breaking companies in every industry. The human equation is alive and well, and it’s taking precedence in workplaces across the U.S. Companies have worked to adjust to massive disruption and change over the past couple of years and as we head into 2023, these efforts continue to evolve.
Please read on as we examine five key HR trends that are shaping the American workplace.
1. The employee experience is front and center.
A recent Gartner survey of HR leaders found that 47% cite the employee experience as a top priority for 2023. Employee expectations have shifted and HR is seeing the impact on attraction and retention. Every milestone along the employment continuum—from the initial contact to the final exit interview—is now viewed as a critical facet that can enhance or detract from the overall employee experience. In addition, companies are realizing that each employee has unique needs, preferences, and circumstances. One size does not fit all, and people need flexible hours and benefits that fit their lifestyles. They are looking to work for organizations that align with their ethics, values, and politics. And they are seeking out companies that show they care about their well-being by taking a holistic approach to mental, physical and emotional health.
2. Identifying new strategies to resolve the talent shortage.
With older generations leaving the workforce and new college grads lacking the skills businesses demand, recruiting and hiring continue to be challenging. Candidates are more discerning, seeking to safeguard their time, benefits, and professional growth opportunities. After 47 million U.S. workers quit their jobs during the Great Resignation, recruiting has become increasingly difficult. Flexible hours, higher pay, and strong benefits aren’t enough to attract top talent. According to Gartner’s HR survey, 36% of HR leaders say their traditional recruiting strategies are falling short, too, when it comes to finding the skills they need. In 2023, HR must draw from marketing’s playbook, developing and promoting a strong brand that highlights growth opportunities, company ethics, and a vibrant culture.
3. Perfecting the nuances of hybrid work.
Since 2020, employers and employees have navigated the pros and cons of remote and hybrid work together. Getting these flexible work models right will be a top HR trend in the coming year. Prior to the pandemic, there had been a perception that in-office employees were more productive than remote workers. In the last two years, however, data has shown that people who worked remotely at least some of the time were actually more efficient than those who worked entirely on-site. While no one has perfected the hybrid work experience to date, it’s here to stay. Employees aren’t willing to give up the flexibility, work-life balance, and money they save by working remotely. Companies that don’t offer flexible work models will continue to have a harder time recruiting and retaining employees. Although there is work to be done to fine-tune the hybrid model, companies now have the structure, systems, and equipment in place to support it.
4. Contingent workers are on the rise.
The Great Resignation resulted in jobs remaining open longer while companies searched for candidates to fill these openings. In the battle for talent, contingent workers — also known as freelancers and contract workers — have been filling the gaps with specific skills that companies need, an HR trend that will continue in 2023. Recent research from Staffing Industry Analysts noted that contingent workers in the U.S. represent 35% of all workers and account for $1.3 trillion of revenue. Many formerly full-time employees have transitioned to contingent work because it allows them to select the projects they want to work on and gives them more opportunities to choose when and how they want to work. Companies benefit by bringing contract workers in on a project basis, allowing them to test the talent pool while saving money on insurance and benefits.
5. Greater visibility for all, including remote and hybrid workers.
With the shift to hybrid work, the concept of employee visibility takes on new meaning and blanket solutions now fall short. Companies need to find new ways to ensure employees are recognized and included, whether they work remotely or in the office. Visibility is especially important for supporting DEI. Leaders must ensure that all workers, including women and people of color, are recognized, represented, and heard. Presenting everyone with the same opportunities promotes greater professional development and nurtures motivation.
Is your organization ready to master these HR trends and make 2023 a landmark year? The HR Team is here with valuable tools, resources, and insights to facilitate your efforts. Please contact our knowledgeable professionals to learn more.
About The HR Team: Founded in 1996, The HR Team is a Maryland-based human resources outsourcing firm committed to developing strategic, customized solutions that respond to the unique needs and cultures of organizations of all types and sizes. Available as a one-source alternative to an in-house HR department or on an à la carte project basis, the company’s flexible service models address the full spectrum of HR needs that many organizations struggle to address. The HR Team helps clients achieve their highest level of success by providing value-driven human resources services that leave them time to focus on what they do best: directing business growth and profitability. Headquartered in Columbia, Maryland, the firm serves all of Maryland, Washington, DC, and Virginia. To learn more about The HR Team, call 410.381.9700 or visit https://www.thehrteam.com/.
