HR Trends 2023

Once the curtain is drawn on 2022, HR professionals are now focusing their attention on what the new year will bring. Identifying current trends in the HR sector is a useful exercise for any company that wishes to remain competitive, among others, in the labor market.

The trends in Human Resources that will mark 2023 will increasingly require reinforcing the well-being of professionals, better measuring their performance and offering a more efficient framework.

To organize the different aspects and provide a picture that is as complete and reliable as possible, we have prepared a ranking of the main HR trends for 2023.

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Top HR Trends for 2023

1-Hybrid work

In 2022, we witnessed an expansion of teleworking. This modality was created in response to the pandemic and has demonstrated clear benefits in retaining employees and attracting talent.

In addition, the productivity figures obtained in 2022 are quite positive. Thus, to remain competitive in 2023, companies must ensure flexibility and provide a greater structure to the organizational model, reviewing the allocation of physical spaces, identifying the appropriate metrics for the new configuration and it will also be necessary to redefine the company's culture.

2-Development of soft skills

Soft skills such as empathy or the ability to work as a team will continue to be highly valued in recruitment processes and defining, measuring and detecting them will continue to be one of the trends in Human Resources for this year.

Training in these skills will bring numerous benefits, such as identifying new leaders in the company, making employees more versatile and performing more, thus increasing retention and attraction.

The way this training is delivered will also change, with greater use of microlearning and micromentoring, and a general tendency to integrate training into daily work.

3-Employee Wellness

Caring for the physical and mental, but also economic, well-being of employees will be one of the main priorities of any company.

After two years of pandemic, many employees have shown signs of stress and attrition, starting with the members of the HR department themselves. For this reason, it will be necessary to review the company's incentives taking this into account and adopting an increasingly personalized approach. Companies will also benefit, as numerous studies have shown that reducing stress and staff attrition increases productivity.

4- Retain the best talent

Given the difficulties in finding new talent in the labor market, companies will try to retain internal profiles as much as possible. Retaining the best talent involves much more than just giving good compensation. 44% of human resources leaders believe that their organizations do not offer a career path that is worth keeping their employees.

5- Diversity, Inclusion and Belonging

Issues related to diversity and inclusion are of increasing relevance and will be decisive for the success of companies, especially since, with the expansion of remote work, the workforce is increasingly international. Therefore, these aspects must be placed at the center of the HR department's strategy from the recruitment and onboarding phase. In addition to diversity and inclusion, in 2023, the theme of belonging will be added, developing that sense of team in employees.

6- HR Analytics

Being able to follow and analyze different types of data is even more important when managing a workforce that is not always present in the office. This year, many companies will make specific use of People Analytics, using it to support decision-making. Predictive tools based on artificial intelligence will also continue to be developed.

7- Automation

The use of technology in the HR department will become even more specialized. Specifically, the use of automation for the management of numerous processes (recruitment, onboarding, even exit-interview) will reduce the workload of HR professionals, allowing them to deal with more strategic issues.

To make the most of the possibilities of modern HR software, the HR department must be trained in these subjects and introduce the concept of digital HR.

8 - Business culture and corporate responsibility

Workers, especially those of the younger generations, are increasingly aware of ethical and sustainability issues. They expect the company to position itself on the most relevant issues and provide them with the security they need. Companies that take better care of this aspect will achieve a competitive advantage in terms of attraction and retention.

9 - Teleworking as a new right

Teleworking or fully remote work has also increased and will continue to grow in the coming years, although many companies will opt for hybrid modalities. There are many benefits for employees in terms of family reconciliation, although we must not forget the aspect of digital disconnection.

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10 - Employer branding

Recruiting will increasingly resemble marketing and companies will invest a lot in the strategy of employer branding, acquiring the right technology to support it and creating a strong presence on social networks. In order to implement its strategy, the HR department will need to develop new competencies, necessary to manage the employment page and candidate communities. In return, it will be possible to reduce search and selection costs and improve results.

11 - Feedback

The HR team must listen to the voice of their employees. For this reason, more use will be made of surveys and the frequent collection of feedback, which will serve to better develop the offer of incentives, draft new hybrid work policies, redefine corporate culture, identify new KPIs, etc. It will be equally important to act on the basis of the feedback received and not be limited to passive listening.

12 - Metaverse

In 2023, companies will begin experimenting with using the metaverse as a virtual office, which will shorten the distance between workers who are at home and those who are in the office. The HR department will be at the forefront of experimentation and will have to deal with unknown issues, such as virtual reality and augmented reality.

13 - Remuneration

Given high inflation, many companies will review their wage policies. Not only providing employees with a higher increase than usual, but also including variable pay for those who don't have it and reviewing the incentive package to help them deal with current problems.

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