📌According to the recent Human Workplace Index for December, a staggering 62% of workers express concerns about potential job loss if a recession were to hit the United States.
In the face of potential recession and job insecurity, employees are understandably concerned about the future. To cope with this uncertainty, nearly 50% of employees took on side gigs or freelance roles in 2022. Economic uncertainty has driven these decisions.
Nepal experienced its first recession in 60 years due to ongoing challenges such as inflation, political instability, and economic downturn. Economists predict that the country, which aims to achieve middle-income status in the next few years, will face significant hurdles in recovering from this slump.
According to the National Statistics Office, the seasonally adjusted growth rate or gross domestic product (GDP) for the second quarter is expected to decline by approximately 0.73 percent.
However, despite the anxiety and stress, employees are not giving up. In fact, almost one-third of workers are actively seeking new, higher-paying job opportunities as they enter the new year. This serves as a clear signal to HR teams that their focus on improving the employee experience must not waver.
HR trends in 2023:
🤖Embracing Artificial Intelligence (AI) for HR Processes:
Artificial Intelligence is revolutionising various aspects of HR, from recruitment to performance management. In 2023, we can expect HR departments to increasingly adopt AI-powered tools and platforms.
According to the latest McKinsey Global Survey, there has been an almost 25% rise in the adoption of Artificial Intelligence in regular business operations compared to the previous year.
In a report called “The Future of Work: Intelligent by Design” by Eightfold AI, they found that most of the 250 HR leaders they surveyed are already using AI in different HR tasks. Stuff like keeping track of employee records (78 percent), handling payroll and benefits (77 percent), finding and hiring new talent (73 percent), managing performance (72 percent), and helping with the onboarding process (69 percent). AI is making HR smarter and more efficient!
AI algorithms can quickly sift through thousands of resumes, analyse candidate data, and identify the best fit for a position. Additionally, AI-powered chatbots can enhance employee experience by providing instant support and answering routine HR-related questions. By leveraging AI, HR professionals can streamline processes, save time, and focus on strategic initiatives.
🧠Prioritizing Employee Well-being and Mental Health:
The global pandemic has underscored the importance of employee well-being and mental health. The HR function itself has not been immune to the impacts of the pandemic. While HR professionals played a crucial role during these challenging times, it has come at a cost.
A survey by Workvivo revealed that an astonishing 98% of HR professionals have experienced burnout in the past six months.
In 2023, we predict that organizations will take greater responsibility for addressing the burnout crisis that is affecting employees across the business. This will be driven by both the moral obligation to support their workforce and the recognition that burnout poses a threat to the organization’s continuity.
The first step in tackling this issue will be for HR to address its own burnout crisis. Despite their natural inclination to focus on helping others, HR professionals must prioritize self-care. Just like on an airplane, they need to put on their own oxygen masks first before assisting others. This is essential for HR to effectively support the rest of the organization.
Furthermore, we anticipate that HR will adopt a more proactive approach to employee wellbeing and resilience. This means developing a comprehensive and holistic approach to employee wellbeing that encompasses mental, physical, and financial aspects. HR professionals will play a crucial role in implementing initiatives and programs that promote a healthier and more resilient workforce.
💻Remote Work and Hybrid Workforce Models:
The pandemic accelerated the adoption of remote work, and in 2023, it will remain a prominent feature of the modern workplace. Hybrid work has become the new normal in the workplace, and employees are the ones leading the way.
LinkedIn data shows that remote jobs, which make up around 20% of all jobs on LinkedIn, received over 50% of all job applications!
They’ve gotten used to the perks of remote work—no more commuting, comfy work clothes, and flexible schedules—and they’re not willing to give it up easily. In fact, surveys show that a majority of remote and hybrid workers would consider switching companies if they don’t have the option to work remotely. It’s not just a choice anymore; it’s a requirement for most employees and employers.
Remember when people thought that managers and employees needed face-to-face time for productivity and engagement? Well, it turns out, managers have become pretty comfortable managing their teams remotely with 45% saying they have enough facetime to effectively manage most employees and situations. Even the 26% of respondents who would prefer more facetime feel they have enough of it to handle major issues.
Almost half of them say they have enough virtual facetime to effectively manage their employees, and even those who want more face-to-face interaction still feel they have enough to handle important matters. This year, we can expect HR professionals to establish transparent principles that outline how, where, and when work is done. They’ll facilitate internal discussions on this topic and push their organizations to make decisions, even if they’re temporary, as businesses explore different workplace strategies.
📈Upskilling and Reskilling for the Future:
As technology continues to advance, the demand for new skills is rapidly evolving. In 2023, HR departments will prioritize upskilling and reskilling initiatives to ensure their workforce remains competitive. Retaining talented employees becomes much easier when they can see a clear path for growth within the company and have chances to learn and improve their skills. And it’s not just about them sticking around for longer – they actually work harder too!
According to Gartner, about 24% of HR professionals feel that their current leadership development programs are not preparing leaders for the future of work.
That’s a problem that needs to be addressed.
One way to tackle this is by focusing on what we’ve traditionally called “soft skills” – things like communication, active listening, and problem-solving. By providing training in these areas, we can create an open and collaborative work environment where teams work together more effectively, and managers build stronger relationships with their employees.
Many companies have already started offering educational programs to help their employees gain the skills they need for their jobs. HR professionals can play a crucial role in pushing for more of these growth opportunities, because when employees grow, the whole company benefits.
HR professionals will leverage digital learning platforms, microlearning modules, and virtual training sessions to facilitate continuous learning and development. By investing in upskilling, organizations can nurture a culture of growth and adaptability, enhancing employee engagement and retention.
🤝Diversity, Equity, and Inclusion (DEI) Initiatives
When things get economically shaky, many leaders have the knee-jerk reaction to cut back on investments. But hold up! One area that absolutely should not be on the chopping block is Diversity, Equity, and Inclusion (DEI). Yep, those efforts to make the workplace more diverse, equitable, and inclusive need consistent love and attention, especially during uncertain times.
Dr. Meisha-Ann Martin, the Senior Director of Research and People Analytics at Workhuman, has a pretty cool insight to share. “When the recession hits, we’ll see which items on the balance sheet organizations are willing to cut”. And guess what? DEI better not be one of them!
Why? Because investing in DEI isn’t just about being nice or politically correct. It’s about recognizing that diversity brings fresh perspectives, boosts innovation, and drives success. Plus, it’s plain ol’ good for business.
So, here’s the deal: in 2023, we need to keep the DEI party going strong, no matter what economic uncertainties we face. By continuing to prioritize diversity, equity, and inclusion, organizations show they’re committed to creating a workplace where everyone feels valued and heard.
And let’s not forget the impact it has on employees and stakeholders. When organizations double down on DEI efforts, they build trust, foster a fun and vibrant culture, and make people proud to be part of the team.
In a nutshell, 2023 is all about putting organizations’ commitment to inclusivity to the test. When the going gets tough, will they stay true to their values or take the easy way out? Let’s keep the DEI momentum going strong and show the world that diversity and inclusion are non-negotiables, no matter what the economic weather is like. It’s time to dance to the beat of diversity and inclusion, and make every workplace party one that everyone wants to join!
Conclusion
As we gear up for a brand-new year, it’s time to embrace the HR trends that have been making waves in recent times. But guess what? These trends aren’t going anywhere—they’re here to stay! So, let’s keep the party going and prioritize what truly matters: keeping our employees connected, engaged, and thriving.
Now, picture this: the economic landscape poses a challenge for organizations. They can either tighten their belts and cut back on people-first initiatives to save a few bucks in the short term, or they can go all-in and promote these initiatives to cultivate long-term gains for everyone in the company. What’s it gonna be?
So, in 2023, let’s be the cool kids on the block. Let’s tackle burnout head-on, promote diversity and inclusion like nobody’s business, and give our employees the support and opportunities they need to shine. We’re talking about creating a workplace that’s not only productive but also fun and fulfilling. Who says work can’t be a party?
And here’s a little secret: when we invest in our people, they become our biggest champions. They stick around, they give their all, and they help our organizations thrive. It’s a win-win situation, my friends!
In a report called “The Future of Work: Intelligent by Design” by Eightfold AI, they found that most of the 250 HR leaders they surveyed are already using AI in different HR tasks. Stuff like keeping track of employee records (78 percent), handling payroll and benefits (77 percent), finding and hiring new talent (73 percent), managing performance (72 percent), and helping with the onboarding process (69 percent). AI is making HR smarter and more efficient!
AI algorithms can quickly sift through thousands of resumes, analyse candidate data, and identify the best fit for a position. Additionally, AI-powered chatbots can enhance employee experience by providing instant support and answering routine HR-related questions. By leveraging AI, HR professionals can streamline processes, save time, and focus on strategic initiatives.
🧠Prioritizing Employee Well-being and Mental Health:
The global pandemic has underscored the importance of employee well-being and mental health. The HR function itself has not been immune to the impacts of the pandemic. While HR professionals played a crucial role during these challenging times, it has come at a cost.
A survey by Workvivo revealed that an astonishing 98% of HR professionals have experienced burnout in the past six months.
In 2023, we predict that organizations will take greater responsibility for addressing the burnout crisis that is affecting employees across the business. This will be driven by both the moral obligation to support their workforce and the recognition that burnout poses a threat to the organization’s continuity.
The first step in tackling this issue will be for HR to address its own burnout crisis. Despite their natural inclination to focus on helping others, HR professionals must prioritize self-care. Just like on an airplane, they need to put on their own oxygen masks first before assisting others. This is essential for HR to effectively support the rest of the organization.
Furthermore, we anticipate that HR will adopt a more proactive approach to employee wellbeing and resilience. This means developing a comprehensive and holistic approach to employee wellbeing that encompasses mental, physical, and financial aspects. HR professionals will play a crucial role in implementing initiatives and programs that promote a healthier and more resilient workforce.
💻Remote Work and Hybrid Workforce Models:
The pandemic accelerated the adoption of remote work, and in 2023, it will remain a prominent feature of the modern workplace. Hybrid work has become the new normal in the workplace, and employees are the ones leading the way.
LinkedIn data shows that remote jobs, which make up around 20% of all jobs on LinkedIn, received over 50% of all job applications!
They’ve gotten used to the perks of remote work—no more commuting, comfy work clothes, and flexible schedules—and they’re not willing to give it up easily. In fact, surveys show that a majority of remote and hybrid workers would consider switching companies if they don’t have the option to work remotely. It’s not just a choice anymore; it’s a requirement for most employees and employers.
Remember when people thought that managers and employees needed face-to-face time for productivity and engagement? Well, it turns out, managers have become pretty comfortable managing their teams remotely with 45% saying they have enough facetime to effectively manage most employees and situations. Even the 26% of respondents who would prefer more facetime feel they have enough of it to handle major issues.
Almost half of them say they have enough virtual facetime to effectively manage their employees, and even those who want more face-to-face interaction still feel they have enough to handle important matters. This year, we can expect HR professionals to establish transparent principles that outline how, where, and when work is done. They’ll facilitate internal discussions on this topic and push their organizations to make decisions, even if they’re temporary, as businesses explore different workplace strategies.
📈Upskilling and Reskilling for the Future:
As technology continues to advance, the demand for new skills is rapidly evolving. In 2023, HR departments will prioritize upskilling and reskilling initiatives to ensure their workforce remains competitive. Retaining talented employees becomes much easier when they can see a clear path for growth within the company and have chances to learn and improve their skills. And it’s not just about them sticking around for longer – they actually work harder too!
According to Gartner, about 24% of HR professionals feel that their current leadership development programs are not preparing leaders for the future of work.
That’s a problem that needs to be addressed.
One way to tackle this is by focusing on what we’ve traditionally called “soft skills” – things like communication, active listening, and problem-solving. By providing training in these areas, we can create an open and collaborative work environment where teams work together more effectively, and managers build stronger relationships with their employees.
Many companies have already started offering educational programs to help their employees gain the skills they need for their jobs. HR professionals can play a crucial role in pushing for more of these growth opportunities, because when employees grow, the whole company benefits.
HR professionals will leverage digital learning platforms, microlearning modules, and virtual training sessions to facilitate continuous learning and development. By investing in upskilling, organizations can nurture a culture of growth and adaptability, enhancing employee engagement and retention.
🤝Diversity, Equity, and Inclusion (DEI) Initiatives
When things get economically shaky, many leaders have the knee-jerk reaction to cut back on investments. But hold up! One area that absolutely should not be on the chopping block is Diversity, Equity, and Inclusion (DEI). Yep, those efforts to make the workplace more diverse, equitable, and inclusive need consistent love and attention, especially during uncertain times.
Dr. Meisha-Ann Martin, the Senior Director of Research and People Analytics at Workhuman, has a pretty cool insight to share. “When the recession hits, we’ll see which items on the balance sheet organizations are willing to cut”. And guess what? DEI better not be one of them!
Why? Because investing in DEI isn’t just about being nice or politically correct. It’s about recognizing that diversity brings fresh perspectives, boosts innovation, and drives success. Plus, it’s plain ol’ good for business.
So, here’s the deal: in 2023, we need to keep the DEI party going strong, no matter what economic uncertainties we face. By continuing to prioritize diversity, equity, and inclusion, organizations show they’re committed to creating a workplace where everyone feels valued and heard.
And let’s not forget the impact it has on employees and stakeholders. When organizations double down on DEI efforts, they build trust, foster a fun and vibrant culture, and make people proud to be part of the team.
In a nutshell, 2023 is all about putting organizations’ commitment to inclusivity to the test. When the going gets tough, will they stay true to their values or take the easy way out? Let’s keep the DEI momentum going strong and show the world that diversity and inclusion are non-negotiables, no matter what the economic weather is like. It’s time to dance to the beat of diversity and inclusion, and make every workplace party one that everyone wants to join!
Conclusion
As we gear up for a brand-new year, it’s time to embrace the HR trends that have been making waves in recent times. But guess what? These trends aren’t going anywhere—they’re here to stay! So, let’s keep the party going and prioritize what truly matters: keeping our employees connected, engaged, and thriving.
Now, picture this: the economic landscape poses a challenge for organizations. They can either tighten their belts and cut back on people-first initiatives to save a few bucks in the short term, or they can go all-in and promote these initiatives to cultivate long-term gains for everyone in the company. What’s it gonna be?
So, in 2023, let’s be the cool kids on the block. Let’s tackle burnout head-on, promote diversity and inclusion like nobody’s business, and give our employees the support and opportunities they need to shine. We’re talking about creating a workplace that’s not only productive but also fun and fulfilling. Who says work can’t be a party?
And here’s a little secret: when we invest in our people, they become our biggest champions. They stick around, they give their all, and they help our organizations thrive. It’s a win-win situation, my friends!
