Top 5 HR Industry Trends to Look Out for in 2023

Top 5 HR Industry Trends to Look Out for in 2023

In a blink of an eye, we are already racing toward the third month of 2023! Phew, the world is moving quickly, and with that, it is bringing massive transformation worldwide. Although we are growing leaps and bounds as far as technology is concerned, there is something more that is gaining momentum in 2023 – 'the-employee-employer-relationship.'

Human resource professionals have played an important role in driving organisations through the storm of the pandemic and handling it during the subsequent inflation surge and economic slowdown. To put it in a nutshell, HR has made an impressive impact on organisations. We believe that 2023 is HR's window of opportunity to realign and reinvent its strategies and functionalities to make a huge change in the global market scenario.

So, what are we waiting for? Here are some exclusively curated HR trends you need to look out for in 2023!

Redefining remote and hybrid work strategies

Due to the pandemic, the working culture has taken a drastic shift. According to a report, people had adapted to remote work so much that around 20% of all jobs on LinkedIn received over 50% of all job applications! During the pandemic, most organizations switched to remote working patterns.

This highlights the resistance to flexible working, which can put businesses at a competitive disadvantage. Therefore, HR is expected to make some decisions in 2023 that can merge work-from-home and work-from-office patterns and create a hybrid model for the welfare of the employees and the employer. Clear working policies and how each role should deliver their KRAs will help build hybrid working models effectively!

HR enters the metaverse

According to a recent report, Meta is set to invest $150 million in creating a collaborative learning ecosystem that will make learning more accessible through the metaverse. In 2023, leading organizations will use this space for workplace learning and training. These can become the starting point for holding some activities, such as virtual events, employee onboarding, career fairs, and meetings. The organisations that have or are willing to leverage the potential of the metaverse will have a more modern employer brand, more engaging interactions with remote candidates, and can even drive productivity for the organisation.

Managing workforce ecosystems

Organisations these days are more than just the home to permanent employees. There are other workers, too, such as contractors, freelancers, project-based consultants, employees working for supply chain partners, etc. As all of these play a crucial role in developing an organisation, HR shall take steps to manage the complex workforce ecosystem beyond permanent employees. These involve managing its contingent workforce and creating a more blended workforce ecosystem by adding value to external contributors.

Policies that focus on total well-being

During the pandemic, many workers in India have been heavily impacted due to work-related stress. The subsequent inflation and increase in purchase parity have added salt to the wound. The economic crisis around the world has also instilled fear in the employees' minds that their jobs are unsafe. This will lead to anxiety and the unwillingness of the people to work in the organisation for a long time. Therefore, we expect HR to move towards a more proactive and holistic approach to their employees' physical, emotional, social, and financial well-being and resilience.

Creating purpose-driven organizations

2023 will mark the year in which HR will focus on creating purpose-driven organizations. Due to COVID, a lot of organisations out there have understood the importance of purpose. Research claims that 80% of workers believe automation will lead to more meaningful work. Demographic changes and changing psychological working environments will play an important role in retaining and hiring employees. Therefore, HR must help shape the company's purpose by connecting it with environmental, social, and corporate goals. These will help build the organisation's positive and impactful brand image and attract better talent.

Wrapping it Up!

Many don't see it, but there's something that will change in the HR space in 2023. It's the rise of algorithmic HR – that is nothing but managing employees with the help of ROBOTS! According to the research firm IDC, 80% of 2,000 global companies will use algorithmic HR managers for hiring, firing, and training workers by 2024.

Impressive, isn't it? There's more to it. The HR in the healthcare sector is also expected to see a drastic shift in its operational policies and increased investments to be made in deskless workers. We are also expecting the inclusion of the concept of a CHRO (Chief Human Resource Officer), who will handle and strategise the entire workforce domain of an organisation with a helicopter view. The list is never-ending, and we can give you more insights once we reach the end of the year! So, stay tuned for more updates.