As we move through 2023, many of the changes that were implemented at the beginning of the COVID-19 pandemic have become permanent aspects of our working lives. Meanwhile, HR leaders face an unprecedented amount of disruption in increasingly employee-driven labor markets. This article explores five HR trends that are poised to impact businesses in coming months.
1. Employee Training and Development
Forward-thinking companies have come to realize the importance of making learning an integral component of day-to-day work activities. According to a McKinsey report, lack of career advancement and development is the top reason cited by employees for quitting their job. Even though the American Psychological Association found that 87 percent of organizations recognize that they currently have a skills gap, or they are likely to have one within the next few years, just 40 percent of workers report that their employer is actively focusing on upskilling.
In 2023, there will be increased emphasis on strategic learning, with employers seeking new skills to teach their employees for the company to remain viable. Companies are seeking to foster soft skills like time management, analytical and critical thinking, and communication as well as develop more technical, hard skills. As part of this trend, microlearning, micro-mentoring and performance coaching are all predicted to become important themes, enabling HR to implement more personalized workplace learning.
2. The Metaverse
According to Gartner, the Metaverse is going to be one of the biggest HR trends of 2023, with one in four people projected to spent at least one hour in the Metaverse daily by 2026. Experts predict that initiatives such as career fairs, virtual events and meetings, and employee onboarding will be conducted via this conduit in years to come. The Metaverse is helping people reimagine a collaborative, creative, productive environment without being restricted by the barriers present in the physical world.
A small number of companies have already begun to take advantage of the Metaverse’s possibilities to modernize employer brands. It is enabling businesses to create more exciting interactions with remote applicants and increase the productivity of their existing workforces. To leverage this radical new technology effectively, businesses need to establish healthy Metaverse working procedures. Updated hybrid working policies are necessary; additionally, leaders must be trained on how best to leverage this revolutionary new setting.
3. Increased Transparency on DEI
Since the beginning of the COVID-19 pandemic, organizations all over the world have drastically revised their approach to DEI as part of efforts to attract and top talent in an employee-driven market. However, despite DEI budgets reaching $7.5 billion in the United States alone in 2020, people remained skeptical about its impact.
HR experts predict that employees will continue to scrutinize the DEI efforts and reputation of current and prospective employers through 2023. Businesses will be expected to do more than just accounting for numerical targets. Employees are increasingly expecting employers to invest in working environments that support women, BIPOC, and other underrepresented talent.
Meanwhile, candidates are predicted to raise DEI concerns throughout the screening and interview processes. Today’s in-demand workers benefit from increased options and agency over their choices. They are not afraid to walk away from companies and positions that don’t align with their expectations and values. For example, according to McKinsey, for every woman director who received a promotion in 2022, two more women directors left for companies with a visible track record of supporting the needs of women workers.
4. Improving the Employee Experience
Employees are increasingly expecting corporate HR to focus on key areas like shared purpose, flexibility, a people-first attitude, and employee well-being. According to a survey by Gartner, 47 percent of HR leaders cite the employee experience as a top priority for 2023.
Since the beginning of the pandemic and Great Resignation, employee expectations have shifted. HR professionals have witnessed a resulting impact on the quantity and quality of talent recruitment and retention across all industrial sectors. From the moment the candidate sets foot in the premises, through the hiring and onboarding process, to training and career development, each milestone is critical to the employee experience.
5. Flexible Working Arrangements
Prior to the pandemic, offices were a crucial hub in corporate culture. The productivity of many employees was measured by how much time they spent at their desks. However, today’s employers have come to recognize that people can still be productive even when not in the same physical location as their colleagues. Indeed, many employees prefer working alone from their homes.
Remote working practices are no longer something that businesses are forced to endure, but rather one that many have come to embrace. From the employee’s perspective, flexible working environments provide the freedom to choose a working style that works best for them. This provides much-deserved autonomy, enabling people to in conditions that are ideal for them, in turn enhancing their engagement and commitment to the company.