8 HR Trends and Predictions for 2023

Let’s take a look at some of the HR trends and predictions for 2023. Will HR be building on the progress of the past year? Will there be changes in the way HR operates? Or a deeper reliance on technologies to better enable hybrid working?

1. Role of HR Will Expand and Grow

For a long time, HR has been more than managing the people of the company. The motivation for those working in an HR role has long been about the human side of the job. What can they do to make the teams gel? How can they help this or that person excel in their career? And how can they bring in a wider range of experience to the company?

2023 is likely to see more of a shift from Human Resources towards human results, with a greater emphasis on helping staff thrive at work.

Therefore, it may result in HR being more than a support function within the business. Instead, HR will encompass more of the initiatives around culture, behaviours, wellbeing and development that are changing the company as a whole.

2. Increased Awareness of Sustainability

Potential employees are increasingly interested in a company’s environmental and sustainability initiatives. Organisations that include this within their employer branding give themselves a better chance at attracting the right talent.

In the past year alone, over 500 organisations were certificated as B Corp, an internationally recognised standard for Business for Good which encompasses sustainability, employee wellbeing, culture and diversity within the organisation. Standards such as these help elevate the employer brand to make vacancies more attractive.

HR will need to have an increased awareness of the dialogue around sustainability issues and the position of their organisation on these issues.

3. Salary Transparency

Organisations are already aware of the gender pay gap and this year we’ve seen extra data around race, ethnicity and background. Having salary transparency will become more important as we continue to understand how salary can be influenced by gender, race and ethnicity. Some of the considerations for HR are salary negotiations, leadership development and how organisations decide to remunerate employees.

4. Focus on Training and Development

As the hiring market becomes more complex with an ageing workforce and low unemployment numbers, the need to retain talent and foster their career goals will become ever more important for HR.

Training and development are crucial to help your talented employees stay with you. If they can see a career path ahead of them and feel supported to develop their skills, they are more likely to feel part of your business. And therefore, less likely to be looking elsewhere for that next move. According to Gartner, 47% of HR leaders don’t feel there is a compelling career path within their organisation right now.

HR will be critical in helping to identify those within their teams who need nurturing and development.

5. More (or Even Better) D&I

Diversity and inclusion will continue to be a big topic for HR to handle. As we understand how organisations can better approach diversity and inclusion, HR will be instrumental in driving this forward. As such, diversity within leadership roles will also continue to be an HR trend for 2023. Including looking at how organisations can have better representation throughout the organisation.

6. Expanding Hybrid Working

The ways in which we work will also continue to change and develop. New technologies will allow for different approaches to hybrid working. HR and leaders have a particular challenge around hybrid working as they need to make sure it works for everyone. This means helping those who want to be in the office have space to do so. Plus, giving support to those who find it easier to work from home.

Therefore, as hybrid working continues to develop within organisations, the role of HR will also continue to change around the needs of the company. 42% of HR leaders say that hybrid working will be a priority for them in 2023. Although they don’t necessarily have a specific strategy in place for how this will work.

7. Shifts in Company Culture

We already see a shift to a people-first culture in many organisations. 2023 will continue to see an increase in this trend for HR leaders. Developing a company culture takes time and is often unseen until there has been a slow but dramatic change in the culture. For HR leaders, understanding how culture change can be measured will be an important part of how this work is done.

8. Focus on Retention and Quiet Quitting

As with training and development, creating a good employee experience will help retain staff. At the same time, HR will be spotting quiet quitters to put support in place for employees.

HR Trends of 2023

HR trends of 2023 will have an element of getting people excited about their work again. It will be developing those who have potential and engaging the staff who are at risk of disappearing. While we cannot predict how the economy and labour market might change in the coming year, there are some strong themes that will be taken forward this year. Plus, can see the way that the role of HR is expected to develop within the organisation.

Of course, we cannot predict the future and 2023 might also bring us some unexpected surprises.