As the world of work continues to evolve and shift, HR leaders are presented with a unique set of challenges for 2023. Below, we will explore five trends that HR leaders should be aware of and prepare for in the upcoming year. From job and organization redesign to the recession and resultant tech bust, the return to in-person work and events, practical AI and automation, burnout, and DEI, these trends will shape the way HR leaders approach the changing landscape of work in 2023.
Managerial Skills
Strong managerial skills are essential for any HR leader to be successful in 2023. In a recent report, HR industry analyst Josh Bersin noted the unique landscape of the coming year that is unlike any other. For 25 years he has written annual predictions about the world of work. Bersin believes that this year may redefine almost everything. There are a lot of complex factors occurring at the same time: economic challenges and inequity, an unprecedented competition for talent, and major industry changes due to war, climate change, and new energy policy.
Then there is the potential of new AI technology such as ChatGPT, mixed with an upcoming presidential election. Bersin believes that the shifts we see right now are already redefining future jobs and companies. He shared that is why McKinsey analysts labeled the leaders of tomorrow “ambidextrous leaders”: those who can play both defense and offense in uncertain times with insights, commitment, and execution.
Recession and Retention
Forrester predicts that businesses will deal with the challenges of a confusing, talent-constrained recession. And that recession-focused firms will reduce spending on employee experience and face the consequences.
Last year was marked by the start of a tech slowdown caused by higher interest rates, which resulted in massive layoffs. This tech slowdown is now spreading to the rest of the economy, creating difficulties for the current talent market, which is one of the most competitive ones in recent history. Companies are now forced to compete fiercely for talented and skilled employees, which can drive up the cost of recruitment, making it more difficult to weather the economic downturn.
To win and keep employees happy, many organizations will attempt to improve their employee experience, which brings us to our next trend.
Employee Burnout
Employee burnout has been steadily increasing for years, and the pandemic has served as an impetus for even more workers to become unsettled. According to LinkedIn, one of the fastest-growing job titles is that of an employee experience manager—an individual charged with helping employees to create and maintain a positive and sustainable working environment. These professionals are in high demand as more and more organizations understand the value of a healthy and thriving work culture. Their job is to ensure that employees have access to the resources they need to stay motivated and engaged. In addition to providing teams with the tools and resources they need, employee experience managers may also be responsible for tracking employee feedback, addressing any issues that arise, and helping to foster a sense of connection and community among colleagues.
Learning AI and Automation
ChatGPT and other AI tools are the talk of the town, even for HR. With its sophisticated algorithms and natural language processing capabilities, ChatGPT is helping many office workers, including writers, designers, and project managers, complete much of their work in a fraction of the time. Similarly, automation solutions such as low-code, no-code, and robotic process automation (RPA) tools are transforming the way businesses and organizations operate. These powerful tools are enabling organizations to be much more productive and efficient despite facing a tight talent market.
By providing companies the tools to automate mundane tasks and tedious processes, automation technologies are freeing up employees to focus on more meaningful tasks that require a human touch. As a result, businesses are now able to take advantage of the best of both worlds: the efficiency of automation and the creativity and ingenuity of human employees. At the rapid pace with which it’s accelerating, this trend requires L&D teams to commit to training their people how best to utilize these emerging tools.
DEI
DEI has been a central theme for HR leaders for several years. This year is expected to be no different. McKinsey consultants, in a follow-up to their popular “Diversity wins” piece, describe thematic lighthouses that will guide leaders into the future.
These themes can be broken down into five distinct categories, each of which is an important driver in the DEI conversation. The first is a nuanced understanding of the root causes of any given issue. The second is a meaningful definition of success and what it looks like for organizations and their stakeholders. The third is having accountable and invested business leaders who are willing to put in the work and remain committed. The fourth is creating solutions that are tailored to the context of the problem that is being addressed. Finally, the fifth is ensuring rigorous tracking and course correction to ensure that the solutions are achieving their desired outcomes. All of these elements are essential in order to promote meaningful and lasting change.
Conclusion
As 2023 unfolds, HR leaders must be prepared to face a unique set of challenges that will shape the way they approach the changing landscape of work. From managerial skills to organizational changes and automation to employee stress and inclusivity, HR leaders must stay ahead of the curve in order to successfully navigate the coming months. To do so, they can leverage the five trends outlined above as a guide, and strive to create an environment that is conducive to innovation, creativity, and growth.