5 HR Trends That Change The Way We Work In 2023

2023 has already arrived. Although HR has been at the forefront of change and crises in recent years, there is a chance that it will miss this important transformation in the way we work.

This year presents HR with a window of opportunity to redefine the significance of the function in the post-Covid. Human resources specialists have been crucial in helping businesses navigate the pandemic, the ensuing inflation spike, and the accompanying economic recession. In other words, if properly enabled, HR may have a significant impact on enterprises.

Explore 5 HR trends in 2023 with One IBC^®

In this article, One IBC^® has highlighted 5 HR trends that we believe will influence the workplace in 2023. Let’s dive in!

1. Focus on wellbeing

Our first HR trend prediction for 2023 is that firms will be more accountable for the impending catastrophe of employee burnout across the board. Firstly, it is the proper thing to do, and secondly it jeopardizes the organization’s viability.

The American Psychological Association (APA) reports that over 3 out of 5 workers experienced negative effects from workplace stress following the pandemic. 87% of Americans are concerned about inflation, and 7 out of 10 workers are concerned that their pay hasn’t increased in line with changes in the purchasing power.

HR will also need to deal with its own burnout crisis. HR specialists should put on their personal oxygen masks first, even though this may go against their profession’s inherent need to prioritize aiding others. If not, the department won’t be able to support the rest of the company.

Next, HR will be more proactive toward resilience and well-being. This entails creating a more comprehensive strategy for employee welfare that prioritizes mental, physical, and financial wellbeing.

2. Manage workforce ecosystem

Although HR has historically concentrated on permanent employees, alternative worker types, including as contractors, gig workers, and employees working for supply chain partners, are becoming more and more crucial to the company’s ability to deliver services.

According to analysis, 16% of people in the USA have made money through gig networks. ADP estimates that one in every four employees in 40% of businesses work as gig workers. As a result, a significant portion of the entire workforce is not managed, which denies HR the chance to have an impact.

In our opinion, HR will start to manage the intricate workers outside of permanent employees in 2023. Three implications flow from this.

• Step 1: HR would actively participate in managing its personnel.
• Step 2: By enhancing the value of external contributors, HR can help the platform economy of today’s labor ecosystem by integrating a more diverse workforce.
• Step 3: HR delivers best practices to vendors, service providers, and partners.

People is the backbone of any organization

3. Remote and hybrid working

Throughout the pandemic, working style has changed. The pandemic has accelerated digital transformation in companies by 3 to 4 years, according to McKinsey. And employees have adjusted in line with it. For instance, data from LinkedIn reveals that more than 50% of all job applications were submitted for remote positions, which account for just 20% of all jobs listed there.

This demonstrates how businesses will suffer a competitive disadvantage if they oppose some level of flexible working. Because not every business is aware of this, they continue to use outdated recruiting methods.

As a result, HR professionals will need to be more familiar with remote candidates. Finally, HR itself will likely prefer hybrid/remote style. When it comes to the result of remote working, HR has a key role to play, and we anticipate seeing a lot more of this in 2023.

4. HR in Metaverse

By 2026, it was expected that 25% of people would spend at least an hour every day in the Metaverse. This means that in 2023, many companies will start implementing some activities, including virtual events, employee onboarding, career fairs, and meetings.

Training and educating freshers can also take place in the Metaverse. With a $150 million investment in the creation of an immersive learning ecosystem, Meta aims to broaden the availability of education in the Metaverse.

HR now has the opportunity to design a virtual workspace independent of the company’s physical locations. Without being constrained by physical limitations, the Metaverse enables the construction of a creative, collaborative, and productive workplace.

HR in the Metaverse in 2023

5. Algorithmic HR on the rise

Most advanced businesses will begin managing employees using robots around 2023. That’s why in 2023, algorithmic HR will be on the rise.

By 2024, 80% of the world’s 2,000 largest corporations will employ algorithmic managers for the hiring, firing, and training of employees. The gig economy already has this happening. Additionally, 40% of HR departments in multinational businesses use AI technologies, which expand the candidate pool, speed up recruiting, and boost engagement and retention.

Algorithmic management will assist HR to provide a just, open, and effective procedure. Creating equity is a great opportunity that HR people can seize. This entails letting the system uncover current biases in previous HR data.

Algorithmic HR can process a lot of data, and support managers in making better-informed decisions. Openness and transparency could also be included in the process.

Driving strategic impact through people is HR’s fundamental strength. It’s time for HR to stand up, seize the opportunities that 2023 will bring. Businesses need to see the bigger picture and recognize that HR trends affect the entire company, not just one department. To effectively manage personnel changes, the business and HR department must work closely and smoothly together.