Today, workers now have more control over their employment and talent may be difficult to acquire or keep. In response, the human resources landscape may also need to change, and several trends point to a major HR transformation in 2023.
5 trends that will shape HR management in 2023
According to Fast Company, there are five key trends that will likely influence employment in 2023. These are as follows, and many managers may be familiar with all of them:
- Greater transparency in employee compensation
Per a study from Talent.com, 35% of employees have experienced discriminatory compensation policies, 50% of which are women. Major cities like New York have now introduced laws requiring employees to openly state the salary range for all their job descriptions, and many others are expected to follow suit. These laws highlight payment gaps and virtually expose unfair compensation policies. Additionally, pay transparency helps recruiters find the best employees for the job and shapes a business’ employer brand.
- Increasing role of benefits in attracting new workers
The same study shows that job seekers are attracted to companies that offer great benefits. It tells us that 58% of Americans looking for jobs see benefits as a major factor in their decision to apply for a job, ranking only next to the salary on offer. HR managers should take time to ramp up their benefits package if they are looking to hire new talent. More comprehensive employee insurance policies and healthcare packages are always a good start.
- Growing emphasis on employee mental health
Mental health is a growing concern among employees, especially in the face of economic uncertainty and the prospect of layoffs. The Covid-19 pandemic highlighted this need, resulting in an increasing number of companies incorporating psychological well-being into their wellness programmes. This trend should continue throughout the rest of the year and into the future.
- Skills development taking the lead in employee retention
HR managers can incorporate the improvement of both soft and hard skills of their employees into their worker retention strategy. Developing existing employees is a more cost-effective way to close the skill gap within the company than hiring new talents, of which there’s limited supply and high competition. Doing so also gives you an opportunity to provide your employees with essential roles, helping them stay in the company even in the face of uncertainties.
- Hybrid workplaces will remain the norm
The pandemic introduced the world to the wonders of working from home, and many workers are not keen on giving up the benefits of this setup any time soon. On the contrary, as Covid-19 becomes to many a more distant memory, and economies are opening up, many businesses encourage a return to the office to promote engagement and ensure productivity. This gave rise to a compromise: hybrid work that allows employees to do part of their work hours remotely. Workers and companies alike favour a hybrid setup, and we’re not going to see it go away in the near future.