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HR Trends for Workplace That Will Make an Impact in 2023

15 min read   |  
Last Updated on
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The business world is constantly introducing new innovations and breakthroughs that have the potential to revolutionize work and how we work. Over time, these changes gain traction and develop into what we call a trend. But, this article will concentrate on one specific type: HR trends.

Some trends are revolutionary that benefit businesses, while others tend to have a negative impact. You need to choose the right trend and implement it to make the organization a better place to work. This will help you prepare better as an HR professional and make changes within the organization accordingly.

Before delving into it, we just want to ensure that this blog focuses solely on the opinions of industry professionals and experts who are well-known in their field of work. And the thought leaders prioritized the HR trends in the blog that will have a major impact in 2023.

Future of Work: 10 HR Trends That Will Impact Workplaces in 2023

1. Organizations Will Need to Focus on Gamification

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The use of game design elements and mechanics in non-game contexts to engage and motivate people to achieve their goals is known as gamification. It entails incorporating elements like points, badges, and leaderboards into non-game activities to make them more enjoyable and engaging.

Gamification has a wide range of applications, and one of the major implementations has been in human resource management. The daily use of HR tools can be monotonous without the element of gamification as they are quite complex and does not offer much on the user experience front. However, if there is the element of gamification, the user experience of the existing tools for the employees elevates.

For example, if you have used a basic learning management tool, it offers very little to the users. There are no leaderboards or use of appealing characters to make things interesting. However, if gamification elements are added, like leaderboards, it generates enthusiasm. The employees will be more open to learning and checking who’s shown the most with the help of leaderboards.

The current workforce consists mainly of Gen Z’s and Millennials, with a lesser attention span. There is lower engagement and usability, which signifies the need for gamification. In fact, when gamification solutions are implemented in the workplace, 85% of employees are shown to be more engaged.

This signifies the overall importance of gamification in the present corporate sector. You just need to prepare yourself better and develop your game plan. In addition, HR professionals can leverage gamification and increase the use of existing tools to automate the systems.

One of the most significant developments in the field of human resources in 2023 will be the rise of gamification. Gamification is the application of game theory to non-game settings, such as the use of points, badges, and leaderboards to incentivize productive behavior in the workplace. The key to successfully gamifying your HR strategy is to design games that are both engaging and difficult for your employees to complete.
- Raine Gui, Founder and Creative Director at Model Chic.

2. Employee Experience Curve Is Important

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Employee experience refers to employees' overall feelings, perceptions, and attitudes toward their workplace. It includes all interactions, events, and factors influencing employees' feelings within the organization.

Some of the main examples or factors that influence employee experience include the following-

  • If employees feel that the offered corporate benefits make their lives better

  • If the process of rewards and recognition is neutral and not biased.

  • If the developmental and learning opportunities help them in improving their learning curve.

  • If the organization is taking adequate steps to ensure job satisfaction and security.

In addition to this, there are a lot of factors that impact an employee’s overall experience. And with 2023 already upon us, it is something that you need to have a look at. According to a Gartner survey, only 13% of employees are completely satisfied with their overall experience.

In 2023, the ultimate goal is to understand an employee's overall experience and work on improving it. And you can do so by gathering real-time feedback highlighting the pain points that eventually lead to a negative workplace experience.

It does not stop there. The next step is to work on improving the employee experience. And you can do that by-

  • Sitting down with stakeholders and decision-makers to prioritize which problems impact the culture and morale the most.

  • Creating a robust internal communication channel focused on improving the interaction between cross-functional teams.

  • Evaluating the existing upskilling programs and making them more efficient in a way that genuinely improves skillsets.

Findings from the State of EX 2022 research indicate the current macroeconomic climate is disproportionately favorable to investment in employee experience. EX work does not have to mean large, broad-based, multi-year projects as these may not translate to meaningful change for everyone inside the organization. Instead, the focus should be on narrow HR challenges – be it attrition, productivity, or performance on their teams – HR teams can take an agile approach to smaller projects that have a bigger and measurable impact on employee satisfaction.
- Christophe Martel, Co-founder and CEO of FOUNT Global, Inc. and former CHRO of CEB (now Gartner)

3. Communication: An Integral Part of a Growing Culture

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Workplace communication refers to exchanging information, ideas, and thoughts between individuals or groups within an organization. It can take various forms, such as verbal, written, or electronic communication.

But whatever the medium, communication has to be effective. This helps employees to collaborate and work efficiently towards achieving a common goal. Moreover, with good internal communication, leaders can-

  • Work on fater response time to emergencies and problem-solving.

  • Make the workforce better informed with newer developments and changes.

  • Improve goal setting by aligning the employees with their skills and responsibilities.

A survey highlighted that 51% of respondents feel intranet is the best way to improve communication. With organizations adopting the hybrid work culture, communication will need to be the front-runner. Hence the focus should be more on improving the existing systems and making it more efficient and usable in 2023.

Improving communication and feedback channels will be another focus for HR in 2023. With the rapid pace of change in the workplace, it's more important than ever to keep employees informed and up-to-date. This means creating channels for two-way communication, and providing regular feedback on performance.
- Brandon Wilkes, Marketing Manager, The Big Phone Store

4. Organizations Will Need to Focus on Improving Employee Manager Relationship

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The dynamic between an individual employee and their manager or supervisor is referred to as an employee-manager relationship. This is a professional relationship aimed at achieving the organization's goals and objectives.

The manager is responsible for providing leadership, guidance, and support to their team and setting expectations and performance standards in an employee-manager relationship. The employee is accountable for carrying out their job duties, meeting their manager's expectations and standards, and contributing to the overall success of the team and organization.

And with the growing demands of the business world, this relationship needs to be balanced.

Employees who are confident in their employee-manager relationship are 70% less likely to be burned out. With 2023 already upon us, organizations must focus on developing a near-perfect relationship between employees and their managers.

This will ensure that newer challenges are tackled well like quiet quitting, the great resignation, and moonlighting which has been a major shock in the corporate sector. Focusing more on having a strategic approach to solving these issues will be pivotal.

2023 will usher in a new era of work. The pandemic has propelled digital transformation four years into the future, transforming the employee-employer relationship. Although HR has led change and crisis management in recent years, it risks missing this fundamental shift in the way we work. We believe that 2023 is the window of opportunity for human resources to reposition the value proposition of the function in the post-pandemic world.
- Andy Golpys, Co-Founder and Creative Director at MadeByShape

5. Leader and Manager Effectiveness in the Workplace

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According to a Gartner, Inc. survey, the most frequent top priority (60% of respondents) among HR leaders for 2023 is leader and manager effectiveness.

Manager effectiveness refers to the ability of a manager to lead and manage their team in a way that results in the achievement of the team's goals and objectives.

But managers and leaders have a bigger role to play in 2023. But why you may ask? The reason behind is that employees need more than a manager at present. They need a person who will be more than a boss and more of a mentor to them. The idea is to guide them in every step and build a career that will make them successful.

With the scenario changing in the past couple of years, making the workplace employee-centric has been the priority. Some of the important factors in achieving “the” effectiveness include the following-

  • Taking the help of other senior leaders.

  • Indulging in leadership training to enhance leadership skills.

  • Acknowledging the importance of employee wellness without any discrepancies.

  • Aligning personal and professional growth to lead the employees effectively.

Achieving these targets will showcase a manager's effectiveness and temperament of a leader. In addition, it is also important for a leader to emotionally connect with their employees to create a psychologically safe environment. This ensures that employees will have an effective manager/leader capable of solving problems with a more holistic approach.

Leaders and managers need to become more compassionate and thoughtful when the topic comes down to effectiveness in the workplace. While leading a workforce, you need to understand and solve the problems of your employees to empower them and try to bring the best in them. Have one-on-one conversations, give them equal voice and heed to their feedback. Without their efforts and support, you cannot go forward and achieve success in the long term.
- Anjan Pathak, Co-founder and CTO, Vantage Circle

6. Perfecting and Increasing Visibility of Hybrid Work in 2023

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The corporate sector as we know has had a massive shift. There has been unprecedented changes and adaptation of strategies that has enabled organizations to tap into a plethora of ideas.

And one such approach has been the inclusion of the hybrid work model.

It is usually a mixture of working from home and on-site work. And this is going to stay for a long time. And according to McKinsey, 85% of employees currently working in a hybrid model want it retained going forward.

However, there is a constraint in how hybrid workplaces work. There are multiple challenges and some of them include-

  • Scarcity of the right tools to make the employees more effective at work.

  • Feeling disconnected with the rest of the organization.

  • Disrupted work processes.

  • Minimal collaboration and lack of good workplace relationships.

All these factors highlights the issue of lack of visibility in the hybrid work model.

You need to make the hybrid system more transparent and successful in 2023 by tackling the issues. A few of the strategies that you can watch out for to make hybrid work more streamlined include the following-

  • Focus on building a robust communication strategy where the priority should be to adopt a new-age communication toolset.

  • Have a more data driven approach to pin-point the issues faced by the hybrid model.

  • Creating an actionable plan to make real-time adjustments in the hybrid model.

All you have to do is have an open approach to adapt to the changes well and make the system work for you in 2023.

I believe that one of the most dominant HR trends for 2023 is going to be perfecting hybrid work. The last year has been all about experimenting with different hybrid work models. Going forwards, HR will draw from what they have learned and try to implement a long-term hybrid model that is the optimal work solution for the company.
- Vincent Cheung, Co-founder of High Income Source

7. Recruitment: The Focus on Internal Hiring

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Recruitment has always been a challenge for organizations. The main obstacle has been finding the right people for the right job.

3 of every 4 (75%) companies have reported talent shortages and difficulty hiring – a 16-year high.

As there has been a real shortage of skilled employees, your best bet would be to focus on internal hiring for 2023. The crucial factor here is that you will better understand your employees and their skills. In addition, you will be cross-cutting the hiring process and investing more in upskilling your current employees to align them for a job that fits them well.

Moreover, you will create a sense of assurance and trust among your employees that they can switch their jobs within the organization. This will encourage them to learn and develop extra added skills that will benefit both the company and the employees.

I think going forward, we will be focusing more on how the existing employees will develop themselves with the training programs. Depending on the skillset and the upskilling level, the chances become higher to focus more on internal hiring. But we do need to keep in mind that the existing training and developmental programs align with the employees’ desired course of career and optimize it accordingly.
- Partha Neog, Co-founder and CEO, Vantage Circle

8. Metaverse in HR

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The Metaverse is a communication medium that connects physical and virtual worlds. It's a digital world with augmented reality and virtual reality technologies that will change how we connect, communicate, and access information.

To begin with, the metaverse is a whole new concept of how we interact with existing technology. It is a virtual or alternate world in which people are replaced by digital avatars and can gather regardless of their geographical location.

Technology's dynamics and definitions have changed with the rise of AI and machine learning. And according to a study, 43% of respondents believe that employers do not have the necessary knowledge or experience in order to work in the metaverse in the future.

What can HR professionals do to implement the immersive metavers in a workplace?

Well, some of the things include-

  • Investigating how the company can use the metaverse to improve its training and development programmes.

  • Speaking with employees to get their feedback on what they want to see from a virtual workplace.

But whatever steps you take, the processes will be rusty. In addition there will be a lot of work that needs to be done to make metaverse more efficient. The focal point in 2023 will be to spread the awareness of metaverse and slowly inject the knowledge of how it works. On top of that you can also highlight the pros and cons of indulging in a world of metaverse.

I believe that one of the most important HR trends for 2023 will be the consolidation of information in the digital sphere. It's safe to say that Metaverse is the most cutting-edge HR practice today. The leading firms in this sector are likely to begin implementing some of these strategies in 2023, including virtual events, employee onboarding, career fairs, and meetings. Without the limitations of the real world, the metaverse allows us to reimagine a world that is more conducive to creativity, cooperation, and productivity.
- Pete Chatfield, CEO at Household Money Saving

9. Investing in Employee Mental Health

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With work-from-home and hybrid work becoming more prevalent, burnout has risen, and employees' mental health has deteriorated rapidly. And that trend has continued in 2023 as well.

Over the previous year, 84 percent of workers surveyed had at least one mental health challenge, ranging from stress and burnout to diagnosable conditions such as depression, anxiety, bipolar disorder, and PTSD. As an employer, you need to address this issue immediately to limit the damage to the workplace.

Recommended Resource: A Complete Guide To Corporate Wellness Program

The leaders can take impactful steps like-

  • Having an emotional connect with the employees.

  • Focusing more on one-on-one sessions and getting honest feedback.

  • Investing in functional wellness programs with positive impact on the employees health.

  • Providing mentorship and addressing grievances to address the pain points of an employee.

You can do much more to help out the employees when it comes to mental health. Keep an open approach and work around it to make plans more impactful and effective in 2023.

Motivation to work has been clearly examined during the past 3 years of the pandemic and now employees are motivated by different drivers which include work - life balance, being happy at work, understanding their why, feeling heard and having the opportunity to find joy in every day which means leadership teams must be very focused on leading by example with practicing healthy behaviors themselves and creating cultures to support and activate mental wellness at work!
- Debbie Bellenger, CEO of Body by Definition

10. The Role of HR in ESG

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ESG is an acronym that stands for Environmental, Social, and Governance. These are three critical factors that can have an impact on a company's performance and operations. ESG refers to how a company addresses these factors in its workplace business practices and decision-making processes.

Environmental factors are a company's environmental impact, such as its carbon footprint, waste management, and resource conservation efforts. Top employers in terms of employee satisfaction have average ESG scores that are 14% higher than the global average, most likely as a result of strong environmental forces.

The impact of a company on people and communities is referred to as its social factors, which include issues such as diversity, equity, inclusion, labor practices, and community engagement.

Governance factors are a company's leadership and management practices, such as transparency, accountability, and ethical behavior.

These are the things that organizations and HRs need to focus on in 2023 and develop a plan that will prioritize them. As more companies are expected to consider the long-term impact of their actions on the environment, society, and their stakeholders, ESG is becoming increasingly important in the business world. The aim is to make the workplace more employee-friendly and improve the work culture that employees will look forward to working in.

In my opinion, an ESG program is a framework that assists businesses in delivering a community- or impact-driven mission while avoiding risk and motivates stakeholders and investors to support a company`s objective. ESG programs must be more transparent and genuine than expansive. Companies of all sizes know the need to champion this people-driven commitment. Even if you are a cash-strapped company, 2023 is the year to double down on ESG by having a clear mission and consistent action plan to support that purpose.
-Lachlan de Crespigny, Co-Founder and Co-CEO of Revelo

11. Change Management in HR in 2023

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Managing and implementing change in an organization is known as change management. It entails identifying the need for change, developing a plan to address it, and implementing the plan to bring about the desired change.

Change management is closely related in HR and frequently cross paths with the rapid changes. According to 53% of respondents to Gartner's survey, organizational design and change management are HR leaders top priorities.

HR professionals may be involved in change management processes because it frequently has a significant impact on the workforce of the organization. And HRs need to consider the factors of change management to improve the efficiency and effectiveness of an organization.

The HR professionals can support the employees during times of change by providing-

  • Highlighting the right training and development to upskill.

  • The new-age tools required to adapt to the changes.

  • Mentorship program to improve the leadership skills in employees.

In addition, HRs need to understand the changing trend to prepare the workforce beforehand, enabling a smooth transition.

Companies may continue to face digital transformation challenges and the need to adapt to changing market conditions, which will remain an important HR topic in 2023. HR professionals will be critical in guiding organizations through these changes and ensuring they are implemented effectively.

Human resource professionals should prioritize workforce planning as the modern workforce is disconnected from the reality of the workplace. Things like shifting skill sets, dearth of talent, high employee turnover, and a change in the power balance between employers and employees are worth considering. Although the performance of their leaders and managers is at the top of their list, many HR professionals will also prioritize change management, employee experience, recruiting, and the future of work.
- Melissa Terry, VP, VEM Tooling

Summing It Up!

The above-mentioned trends are likely to take shape in the year 2023 and mostly influence the work culture. You need to emphasize on it and make sure that everything falls into place around these HR trends. Be strategic and unbiased in your efforts to ensure that the workforce is not in dark about the developments. Going forward, the employees are the one that will help you achieve your long term goals and objectives.

FAQ

1. What are the top HR trends for 2023?

A. The top HR trends include-

  • Gamification in the workplace.

  • Internal hiring to improve and upskill the employees.

  • The use and implementation of metaverse.

  • Focusing on change management to adapt with the upcoming developments.

  • Making the workforce and the leaders more aware about ESG.

2. How will the pandemic continue to impact HR trends in 2023?

A. With the pandemic still at large globally, the main impact will be to aligning the organization with the HR trends and making it more effective.

3. How can HR departments stay up-to-date on emerging HR trends in 2023?

A. The HR department can stay up-to-date by following the top leaders in LinkedIn, exploring trusted HR articles, and exploring hashtags in LinkedIn.

4. What role will technology play in HR trends in 2023?

A. With everything now becoming virtual, technology will be the key in ensuring that the HR trends are effective in the workplace. Technology will help in automating the existing HR systems that will greatly assist in achieving the HR trends.

5. What are the greatest challenges that HR will be facing now and in the future?

A. The greatest challenge that the HR professionals will be facing now and in the future will be to smoothly transition the organization with the upcoming changes. In addition, they need to be hyper active whenever something new comes up and align it with the work culture.

Mrinmoy Rabha is a content writer and digital marketer at Vantage Circle. He is an avid follower of football and passionate about singing. For any related queries, contact editor@vantagecircle.com

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