11 HR trends to watch in 2023 (2023)

The pandemic has forced us to rethink our work in a post-pandemic world. We see a shift to hybrid and remote work, inclusive initiatives and engagement. HR and people operations leaders like you are looking for ways to learn, share and connect to address the biggest challenges facing HR in a fast-paced future.

The top 11 HR trends to watch in 2023 are: hybrid work, inclusiveness, engagement, employee experience, remote work, people-centric HR technology, compensation innovation, career development,Advanced people analysis, reward for performance, and employee well-being and mental health in the workplace.

As we head into the new year, it's important to stay on top of the latest HR trends. Here are 11 of the most important HR trends to watch in 2023:

1. Mixed work

As more companies adopt hybrid work models, HR departments will need to adapt to this new way of working. Calling employees who may still be completely remote to the office is a compromise. Examples of these models are floating hubs, centered hubs and skewed hubs. Use these models as a starting point to design employee experiences that support this new way of working. The implementation of hybrid working models requires mutual trust.

Hybrid working gives you more freedom while still staying connected, which is what many employees want these days. However, the mixing is still a work in progress. It can be the best of both worlds when leaders work with their employees to make things more humane. Recent data supports this leading trend:

See the article on how to implement blending4 days a week, discussing shift days, etc.

2. Inclusion in the workplace

Inclusion has become the top priority for HR leaders. By expanding the reach of remote workers across the country and around the world, the pandemic has created an unprecedented diversity in the workforce — people that may have never been thought of before. With the growing focus on inclusion and diversity in the workplace, HR departments need to ensure that all employees feel included and valued.

Not so long ago, the ROI of inclusion was hugeHSecondright:

• 15% increase in financial performance of gender diverse organizations
• 35% increase in financial performance of racially diverse organizations
• For every 10% increase in management team diversity, the company's profitability increased by 8%

Be sure to start with people-centered work practices that recognize employees for their positive efforts and work. As talent leaders, we need to ask ourselves, "How do we care for this new workforce?"

Inclusion naturally also involves a multi-generational workforce, which benefits them. This ethos of inclusion should extend to how organizations respond to change. How do we engage those who don't want to change? How do we involve all the different people in our organization and still bring about change? This is a huge challenge and a huge opportunity for organizations.

3. Employee Engagement

Employee engagement is the key to success in the workplace. 70% of employees surveyed in the latest Workforce Institute engagement and retention surveyRapportsaid they would look for new jobs, which could mean a big turnover.

Although employee engagement has been a buzzword for years, it has become increasingly important in recent times. There is growing evidence that there is a link between engaged employees and better business results. However, it is worth noting that employee engagement and employee experience (EX) are not the same thing. ifChristyeHoffmanThe host of the Flip Flops and People's Action podcast explained:

"Engagement is the result of optimizing the employee experience. By listening to employees through surveys and acting on their feedback about working at your company, you increase engagement."

Christie Hoffman, Head of Product Marketing and Moderator, PingboardSlippers and people action

As companies adopt more AI and automation, they will increasingly rely on human involvement to successfully launch and grow these initiatives. That's why HR leaders must find ways to learn, connect and share knowledge to address the biggest challenges facing HR in the changing future.

Better involvement leads to higher productivity, less turnover, greater customer satisfaction and better retention of knowledge and skills. Therefore, HR must find ways to keep employees engaged and motivated. Depending on your business needs, platforms such aslatitude,culture enhancer, Insignal boardcan help you achieve this goal.

4. Employee experience

It is critical that you prioritize the employee experience within your organization.Employee Experience (EX)has become an important topic of conversation in recent years. However, there is still some confusion about what it actually means and the difference between EX and employee engagement (as Christie mentioned above). From attracting top talent to onboarding, the employee experience spans the entire employee lifecycle.

The best brands create incredible employee experiences by creating a culture of great service to their clients and customers – and it starts with our people. This extends to the workplace and how you manage benefits, compensation and culture.

Do you want to transform your organization's employee experience? Discover our 2 minutesMicrocourses on EX transformation best practices.

5. Remote work

6. HR technology

7. Salary Innovation

While the good news is that satisfaction with rewards is at an all-time high, the reality is that many organizations will not change their compensation plans in 2022. The time is right for innovation in compensation plans, executive compensation and benefits, and overall compensation structures. Combined with performance review trends, HR expertsHarold Sterk, MBArecently spoke to us about this necessity.

”New performance appraisal strategies are needed, and should be taken into account, to attract potential future talent and retain top performers – much remains to be done.”

Harold Strong, MBA, HR consultant and part-time corporate lecturer

The good news is that pay is not the main reason employees leave an organization. It came third, followed by the way their managers treat employees and the lack of opportunities for career advancement through promotions. It is to say,75%of employees said they would quit if they got a raise. This means your compensation strategy needs to improve if you don't want to lose employees.

8. Career Development

Career development refers to planning and programs that help employees grow in a specific role and within a company. Consider developing a mentoring program that matches people in your organization with others in different departments. it turns outTalentverwerving door mentoringYour employees receive the professional development they need.

”Taking on a new role, gunfire around and trying to make changes before you really understand what's going on and what it takes. don't fool yourself'I don't know everything. I don't know everyone. I really do not know that the main thing does not change everything.'Seeking understanding first is essential to bring about any kind of change, any kind of development, any kind of transformation, organizational and cultural change. Whenever you enter these new scenes and situations, you start by entering sponge mode.”

Peter Schramm, CEOlatitude

Related: Discovergood job guide

9. Advanced Workplace Analytics

Future-oriented HR leaders don't just implement, they integrate and useHR-analyseBetter understand, predict and improve performance. As HR departments move towards remote-first and hybrid workplaces, we see an increased use of data-driven approaches. After all, data is the infrastructure of the employee experience. And HR data is a prerequisite for this.Employee experience transformation, according toLuca BabicvanPeople analytics platformSensory perception:

"HR is still the only function that is emotionally driven – it's not ideal because it's not well thought through by the rest of the executive leadership team and it's to some extent the result of talent. I think that's the case The gap – HR leadership needs to adopt this mindset, and we need to build a data-driven function…because management often values ​​that approach.”

Luka Babic, co-founder and CEO of Orgnostic

To quickly take your HR analytics to the next level, consider any of the followingTop 10 examples of HR dashboardsYou can still use it today.

10. Pay for performance

The Global Pay-for-Performance Index shows that nearly a third of organizations have no pay-for-performance strategy, while53%Has a moderate to high degree of pay variability. For companies looking to improve their performance, the question is "how?" and not "should we?"

11. Employee wellbeing and mental health in the workplace

The importance ofWell-being and mental health of employees in the workplaceIt is critical, especially in a “post-pandemic” environment, that employers can take steps to support employee mental health by providing resources and creating a culture where seeking help is normalized. As an HR leader, it is imperative to prioritize mental health and foster a supportive culture in the workplace to protect and enhance the health and safety of all employees.

11 HR Trends to Watch in 2023 Including Hybrid Work, Workplace Integration, Employee Engagement, Employee Experience, Remote Work, HR Technology, Compensation Innovation, Career Development, Advanced Workplace Analytics, Compensation for Performance, Employee Wellbeing Mental Health should be at the forefront of HR initiatives.

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Thanks for reading my first annual HR Technology Trends report! for more explorationWhat the future of work looks likeand thisRead A new look at the workweek。