Recession, Retention, DEI, and More: Top HR Trends for 2023 - Netchex

The last few years have been times of uncertainty and change—and there seems to be more uncertainty and change ahead for 2023. Even without pandemic shutdowns, near constantly changing circumstances create new challenges for Human Resources departments. Like every year, several HR trends for 2023 have emerged.

Here are the top 10 HR trends for 2023 that you must work towards (with the help of HR technology) this year:

Weather the recession by empowering people

A forecasted recession will present new challenges for companies and executives. Layoffs have always been a common way for a business to reduce costs, but the pandemic has given some employers a new appreciation for the flexibility of loyal workers.

In the face of recession, HR professionals may have opportunities to strengthen company culture and minimize layoffs. By proposing cost-saving alternatives to layoffs, HR can take a more impactful role in company decision-making.

READ: Why CFOs Must Partner with HR and Utilize HR Technology

Demonstrate value with data & analytics

Some executives may be skeptical about the value provided by HR staff. Payroll and compliance are obviously necessary, but historically, it has been harder to quantify the value of less concrete HR trends.

With analytics and data, you can provide detailed reporting on Key Performance Indicators and developing problems. If you decide to promote a performance-based work culture, then analytics can graph the resulting improvements to efficiency.

Surveys about employee satisfaction and culture are inherently subjective, but executives will be more impressed when your data shows results like reduced turnover and increased productivity.

DISCOVER: How Technology Makes HR Reporting & Analytics Easier

Improve recruiting and retention

Layoffs in other industries may give your company opportunities to hire new talent. Existing employees also place a high premium on job security and benefits. Your company can strengthen its workforce by improving retention and recruiting.

Use virtual recruiting tips to pull applicants from across the country and interview candidates remotely. Streamline onboarding to get new hires motivated. Use employee portals to make benefits more accessible and improve retention.

Ensure productivity of remote, hybrid, and office workers 

If you need a louder voice with company leadership, then improving productivity is a great way to claim your seat at the table. While advocating for the well-being of employees, you can also help improve productivity and output.

Remote and hybrid workers can keep the workplace flexible in responding to unusual circumstances, like an office building closing for repairs or a global pandemic. HR staff can facilitate better communication by setting clear standards for email response times and work hours. Bring together different stakeholders and departments to adapt to the changing needs that come along with these 2023 HR trends.

Build a learning and development-based organization

During a recession, most employees value stability, but that doesn’t mean they’ll settle for a dead-end job indefinitely. Development opportunities encourage workers to see their job at your company as a “career” and long term commitment.

Invest in Learning Management Solutions to cross-train employees and reskill for new challenges. Professional development encourages learning, even in departments without many opportunities for upward mobility. Open paths for crossover between departments you’ll have more opportunities to fill openings by promoting from within the company.

READ: Seven Reasons Why You Need a Learning Management System

Amplify employee voices (and then listen to them)

Some companies mostly disregard the feedback of employees.It’s important to listen to what employees have to say. Sooner or later, they’ll happily take their complaints elsewhere, and that negative publicity can make it harder to attract new hires.

Quantitative problems like tardiness and absenteeism can be hard to troubleshoot, but employees can be more specific about the changes they think will improve the company. Workers are great for flagging redundancy and inefficiency in existing company procedures, but they need someone to listen. HR staff provide a great channel for filtering and amplifying the most constructive feedback from employees. 

LEARN: Top Ten Tips for Improving HR Communication

Continue to advance Diversity, Equity, and Inclusion

One of the top ten metrics for HR management is Diversity, Equity, and Inclusion (DEI). Diversity is probably the most familiar term, recognizing that a healthy business includes a cross section of people from different races, cultures, and backgrounds. As your company grows, new hires should be able to represent the different perspectives in your community.

READ: Improve Diversity and Inclusion with Your Learning Management System

Beyond the mere presence of people from different demographics, equity strives for an even playing field, so that promotions and other opportunities are open to everyone. Inclusion goes a step further by making sure that individuals get included in group projects and gatherings, not marginalized and excluded.

Promote mental health and well-being

Everybody gets “a case of the Mondays” occasionally, but neglected mental health can erode a workforce. Employee well-being may not seem like the company’s responsibility, but declining health and other well-being issues can affect morale, sick leave, and turnover. If your company’s programs have a positive impact on employee quality of life, then their appreciation can improve the company culture and retention.

DISCOVER: 5 Tips to Support Employee Mental Health in the Workplace

Fully embrace HR technology and automation 

When it comes to HR, technology (and the automation that comes along with it) is a prerequisite. To maximize efficiency, the time has come to invest in single-source software for employee management tools. Invest in a robust system with all-in-one capabilities, and you can eliminate the tedious hassle of manually transferring data every pay period. 

READ: HR Technology: Why NOW is the Right Time to Switch to Netchex

Motivate employees with a sense of purpose

Automation scares people who see boring and repetitive tasks as part of their job security. Fortunately, you don’t have to make an either-or choice between upgraded software and human jobs. Improving technology allows you to re-focus on bigger goals and productivity.

Use the opportunity to improve company culture and empower workers. When it comes to HR software, you can use advanced reporting to tackle subtle problems and measure results. Rather than removing the need for HR staff, you can free up workers for more meaningful projects.

Learn more about how Netchex can help you prepare for these HR trends for 2023 and more:

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