The pandemic has propelled digital transformation four years into the future, and the employee-employer relationship has transformed. 2023 is HR’s window of opportunity to reposition the function’s value proposition in the post-pandemic reality. Here are 11 HR trends that will be shaping 2023 in the workplace.

A focus on total wellbeing

• The first step will be for HR to overcome its own burnout crisis.
• Next, we expect HR to move towards a more proactive approach to wellbeing and resilience. This involves developing a more holistic employee wellbeing approach focusing on mental, physical, and financial wellbeing.

Managing workforce ecosystems

• 2023: HR will become actively involved in managing its contingent workforce
• They will integrate contractors, gig workers, and external contributors into the HR value chain
• In today’s platform economy, HR can contribute to creating a more blended workforce ecosystem by adding value to external contributors
• HR should share best practices with supply chain partners

Redefining remote and hybrid work strategies

• In 2023, HR practitioners will set clear principles about how, where, and when work is done
• They will facilitate internal conversations on this topic and push their organization to make decisions, even if they are temporary, as organizations explore different workplace strategies

The evolving role of the CHRO

• During times of crisis, CHROs lead board meetings on policies, business continuity, and employee safety and productivity
• The CHRO spearheads environmental, social, and corporate governance (ESG) goals
• Employees have more faith in their CEO than in government leaders, journalists, or any other CEOs
• 60% of employees expect their CEO to speak out on social and political issues they care about

HR enters the metaverse

• The metaverse opens up the possibility of reimagining a productive, collaborative, and creative work environment unconstrained by physical norms.
• It also provides HR with a unique opportunity to redesign the (virtual) workspace beyond the traditional, often uninspiring office environment.

Creating purpose-driven organizations

• Meaning is becoming a key differentiator for organizations to help to retain and attract talent
• A clear purpose will also help engage existing talent, increase productivity, and fill the $8.5 trillion gap that the talent shortage is expected to cost in 2030

Inclusion across the employee life cycle

• Diversity, equity, inclusion, and belonging (DEIB) have been receiving more visibility
• All Fortune 100 companies have DEI initiatives outlined on their websites
• 49% of them have a dedicated DEI initiative leader
• Despite the increased visibility and attention paid to DEIB, organizational leadership is still too often White and male
• HR will have to step up its game in building more inclusive HR practices

Upskilling leaders and managers

• HR will invest in leadership development plans and programs, training, mentorship, on-the-job immersive experiences, and talent rotation strategies to fast-track exposure, experience, and skill development. HR will also help build soft skills, including empathy and active listening.

Increased investments in deskless workers

• The pandemic emphasized the difference between what was traditionally office work (working comfortably from home) and deskless work (showing up every day)
• About 1 in 12 have already made the switch to a different type of work
• Another 37% could leave within the next six months
• However, the vast majority of workers would stay in their current roles if their conditions improved
• Companies should be doing their best to improve working conditions

The rise of algorithmic HR

• 80% of global 2,000 companies will use algorithmic managers for hiring, firing, and training workers by 2024
• 40% of HR functions within international companies have incorporated AI applications
• This brings additional challenges related to fairness, communication, and inclusion
• HR practitioners will be instrumental in ensuring that HR technology complements diversity and inclusion in the future

Reshaping workplace learning

• More strategic learning – the training of skills aligned with the capabilities the organization needs to be competitive
• Implementing learning these within the flow of work requires a reinvention of traditional training methods
• HR will have to refresh many old learning habits and replace these with more contemporary techniques

Challenges to overcome

• HR needs to prioritize their own wellbeing and continue building resilience
• Organizations need to adopt a broader perspective and understand that HR trends don’t concern only one department but the whole business
• Business leaders and HR need to collaborate closely and acutely to successfully handle the changes in the world of work
• We are on the cusp of entering a human-first era
• It is time for HR to step up to the plate, capture the opportunities that 2023 brings, and reposition the function’s value proposition as a leader of the business and a builder of competitive people capabilities

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Blue Genes Research is a HR & Recruitment Consulting firm established in 2006, run by a group of IIM, IIT, TISS, JBIMS & XLRI alumni Veteran HR practitioners and business consultants with 250 years of cumulative experience.

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This article is based on blog published by AIHR – read full content below

https://www.aihr.com/blog/hr-trends/

20% of startups / small businesses fail in the first 5 years because of this one reason…

Startup Founders / Small business owners – must read this…

One of the most critical success factors for a startup/small business is completely sidelined.

People make or break a business; 90% of startups fail in the first 5 years and 20% fail due to people problems.

Startups are unable to attract, hire, manage and retain Top Talent as Co-founders or the Core team members.

Similar to Sales & Operations – The best time to hire a full function CHRO and the HR team is when you start the business. But, hiring a full-function HR team headed by a CHRO, job portal subscription, job advertisements, etc would cost a minimum of 30 Lacs per anum – that is not affordable for any startup/small business.

Due to very high fixed cost, infra, systems, and time requirements Founder themselves to get involved in HR/Recruitment related tasks or land up giving this responsibility to junior HR/recruitment staff. This takes away the most required focus of the founder from their core and critical business activity and also they get mixed results because none of them are experienced in HR/recruitment matters.

So what is the solution to this most critical issue? What are you doing to take care of this issue?