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Owing to these dynamically changing workplace trends, HR professionals are facing a whole new set of challenges nowadays. Be it employee hiring, talent retention, employee engagement, or remote work management, the HR function has become a lot more complex in the present world. Let’s dive into the top HR trends to focus in 2023.

The COVID-19 pandemic transformed the way we work and impacted almost every industry including Human Resources. The Great Resignation which followed in 2021 marked a record number of people leaving their jobs. 

The good part is that with analytics and advanced technologies like AI and ML, HR leaders can address these challenges effectively. Thus, more and more organizations are investing more in Human Resource Management than ever before. 

Human resources are the pillars of any organization and they play a pivotal role in the success of the business. It is important for every business to keep up with the changing HR trends and respond to them strategically. It’s time HR leaders redesign their strategies and become future-ready. 

Let’s take a look at the top HR trends to expect in 2023. 

Top HR trends

Top 5 HR trends

  • Hybrid Work Model 
  • Employee Wellbeing 
  • DEI in Workplace
  • Digitization of HR functions
  • Employee Upskilling

1. Hybrid work model is here to stay

The move to a hybrid work model is one of the biggest drivers of business transformation in the post-pandemic world. A hybrid model is a flexible work model that allows some employees to work from the office and others to continue working from home. 

According to a report by Microsoft, 73% of workers want flexible remote work options to continue and 66% of industry leaders are considering redesigning their workplace for hybrid work.

Looking at the current scenario, one thing is clear: flexible work is here to stay and HR leaders should be prepared to adapt to it. HR teams should focus on creating a more employee-centric work model giving high importance to flexibility, collaboration, and empathy.

2. Employee well-being is the top priority in HR trends

Health & well-being has become the top priority for every individual ever since the outbreak of the global pandemic. The lack of social activities and direct human interactions during the lockdown badly affected the emotional well-being of employees working remotely. 

Top organizations stepped up to support their remote employees through vaccination drives, free health checkups, awareness programs, and much more. Investing in activities to promote employee wellness will help HR teams to retain and attract good talent. Hence, the future focus is on creating a healthy and inclusive work environment for people. 

3. Growing relevance of DEI in the workplace

Companies in the top 25% for diversity were 36% more profitable than those in the bottom 25%. (McKinsey). 

Apart from flexible work models and employee-centric strategies, there is also a rising pressure on enhancing Diversity, Equity & Inclusion in workplaces. Companies with diverse workforces are likely to have better profitability and growth. Diverse companies are 70% more likely to capture new markets than those that lack diversity. 

Benefits of promoting DEI practices

Moreover, having a culturally and ethnically diverse workforce creates a sense of belonging and connection among employees. DEI practices should be considered as an important business practices rather than just an HR function. DEI initiatives are necessary to address discrimination, unconscious bias, payment bias, harassment, and similar issues at the workplace. 

Some of the ways businesses can implement DEI practices at the workplace are as follows:

  • Make Inclusive Workplace Policies
  • Diversify Interview Panel
  • Build a Dedicated DEI Committee
  • Offer DEI training for managers & employees 
  • Make use of Employee Resource Groups 
  • Take Employee Feedback & Surveys 
  • Measure Progress Using KPIs
  • Give More Focus on Pay Equity

4. Digitization of HR functions

Technology is increasingly being integrated into HR functions for ease of operations and for reducing the amount of manual work. A variety of HR management software are available in the market today for making the process of workforce planning and management hassle-free. 

Organizations with global operations and remote working employees are increasingly leveraging the benefits of digital technology. HR professionals need to acquire the skills necessary to use newer technologies and the latest HRM tools to stay ahead in the competitive market. Digital proficiency is an essential skill for HR managers in the future workplace. 

5. Employee upskilling

Last but not least HR trend, employee upskilling, and training is something that should never go overlooked by HR teams. The number of new skills required for jobs is continuously increasing day by day. 

“According to a report by Gartner, 29% of the skills that were present in an average job posting in 2018 will be obsolete by 2022.”

Employers should invest more on employee training and upskilling programs to respond to changing job requirements across various industries. 

Employee upskilling initiatives will not only increase worker productivity by 6-12% but also increases employee loyalty and satisfaction, reducing their likelihood of leaving the job.

In a survey conducted by McKinsey, 77% of business leaders indicated that employee retraining is very or moderately important for the future success of their organization. 

Along with other day-to-day operations, HR leaders should develop a continuous learning environment for their workforce. 

Wrapping up on top HR trends to focus in 2023

These HR trends present many new opportunities for workplace transformation and innovation. HR professionals should be prepared to face the challenges and turn them into opportunities to reshape the workplace environment and culture. 

The focus should be on creating a healthier and happier workplace for all. HR teams will need to explore innovative strategies to attract and retain talent, enhance employee experience, diversify the teams, and increase productivity. Earn EMBA in Human Resource Management from Eaton Business School.

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