10 HR Trends You Need to Know for 2023

2022 was wrought with lessons for HR professionals. As the year draws to a close, we’re taking a moment to reflect on a year adjusting to the “post-pandemic” work environment.

COVID dramatically altered how we work and now, with 2 years of experience behind us, it's clear that change has taken hold of everything from the hiring process, to company culture, to performance management.

The rise of remote work models, trends like quiet quitting and the great resignation, and restructuring of HR departments, have increased the demand to hire and retain top talent.

Now, looking ahead to 2023 it’s clear that if we want a secure future of work, we’re going to have to rethink how we mold our organizations.

We’re all tired of hearing it–but the usual  work environment is well behind us and we’re faced with a “new normal.” Key priorities like employee retention, employee well-being, and reducing burnout rates are on everyone’s mind in the new quarter.

Keep reading for our roundup of the 10 HR trends that will shape the world of work in 2023 and beyond.

Are you ready for a new HR future? Download our free guide to find important statistics, new definitions, and practical tips!

1. People-first is the priority

It’s time to treat employees like humans first and workers second. This means additional flexibility, leading with empathy, and providing space for people to bring their fullest selves to work.

For Vice President of People at Salesloft, Katie Cox Branham, focusing on intentionality is how she ensures phenomenal execution. “Connection and transparency are the keys to success. Transparency is incredibly important. Transparency around our numbers, our all-hands communications. We’re so intentional about the information we share with our employees.”

Leaders who are looking to create long-term success will prioritize intentionality at every stage.

“CEOs are recognizing they need to inspire followership of their workplace strategy, offering a compelling vision with the flexibility their people want, while also ensuring high performance. It's HR’s moment - this generation of HR leaders has been appointed by history to define the workplace of the post-industrial era.” Diane Gherson, Senior Lecturer at HBS, Former CHRO at IBM, Independent Director

2. Its time to place greater emphasis on Diversity, Equity, and Inclusion

Future leaders will prioritize DEI initiatives because the candidates of today are prioritizing a more inclusive workplace.

As Chief People Officer, Donald Knight is innovating DEI at Greenhouse Software. Knight leans on his “4 stages of allyship.”

1. Inviting
2. Support
3. Engagement
4. Championship

These 4 key pieces guide every piece of Greenhouse’s operations. “At Greenhouse, we believe that every good idea starts with inclusion, which happens when diversity, equity, and allyship are present.”

Keep track of important dates with our free DEI calendar for 2024!

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3. Quiet Quitting is more than a moment

In 2022, social media saw the rise of “quiet quitting.” Though the concept definitely isn’t new, the widespread awareness certainly was. But it’s more than just focusing on which employees are doing the bare minimum and having those dreaded conversations...quiet quitting doesn’t just fall on the employee.

Whether due to poor pay, unmanageable workload, burnout, or lack of training programs to promote growth, if an employee is doing the very least on a daily basis it’s likely due to general dissatisfaction with their employer.

With that in mind, this “trend” isn’t going anywhere unless employers take a step back and assess the environment they’re creating. Research ties the rise in this trend to a lack of clarity and uncertainty around expectations, missed opportunities for growth and learning, and lacking a sense of purpose.

In order to get ahead of workers quietly quitting from 9-5, commit to establishing company core values and remaining dedicated to them, and infuse celebration and connection wherever possible.

4. Salaries are rising across industries

With rising inflation, worker shortages, and the challenge of retaining new hires, employers are feeling the pressure to increase pay across their organizations.

Employers in the U.S. plan to boost salaries an average of 4.6 percent in 2023, an increase from 4.2% in 2022. This comes as no surprise, however; roughly half of workers who switched jobs between April 2021 and March 2022 secured pay increases of almost 10%.

5. Its time to revisit your EVP

Strategizing a brilliant employee value proposition (EVP) is key if you want to attract and retain top talent in 2023.

A winning EVP will clearly communicate the benefits an employee stands to gain by joining your organization while verbalizing your unique company culture and core values.

Research from Gartner indicates that nearly 65% of employees have turned down a job due to an unclear EVP. What’s more, effective execution of an organization’s EVP can reduce turnover by almost 70% while boosting new hire commitment by around 30%.

In times of shakiness and uncertainty, your EVP is how you’ll unite your people to refocus on your organization’s greater purpose.

Download our free Employee Engagement Action Plan for templates and best practices to kick start your strategy!

6. Hybrid work is here to stay

Employees work harder when their employer makes space for them to work how they need to. With that in mind, it's no surprise that hybrid work models have gained popularity since the pandemic. According to Zippia, 55% of employees want to work remotely at least three days a week while 63% of high-growth companies use a “productivity anywhere” hybrid work model.

Hybrid models allow humans to be humans, which is essential in the “post-pandemic” work landscape. If you haven’t considered giving your team more time and flexibility to work from home, it might be time to reconsider.

Allowances for extended lunches, time to pick up the kids without having to worry about leaving work behind, and even an extra hour in the day to meditate or go for a run have the power to fundamentally change how employees view their relationship with work.

7. Employee Listening is key (when done well)

For organizations hoping to uncover the source of burnout and dissatisfaction while boosting overall engagement, employee listening is key.

When effectively leveraged, the data employee listening provides can make or break the success of your organization. It’s important to go beyond just a standard employee survey, however. While surveys do provide a quick check-in that can accurately assess sentiment, results can stagnate, thus becoming counterproductive over time.

Platforms like Cooleaf allow you to capture instant feedback with built-in incentives for employees who complete assessments. These kinds of tools are key for making changes based on data-driven recommendations.

8. Building an online community around your brand is essential for engagement

There’s a reason why brands like Spotify, Microsoft, and Apple can be recognized by just a simple logo. With just an icon, you can associate a company culture, product, and feel with each of these brands.

In a saturated market, recognition is everything. That’s why building an online community around your brand is key.

Not only does the internet provide further reach, but it creates importance and visibility that other mediums just can’t compete with. This will only prove more true into 2023, making expansion into programming like podcasting, web series, and blogs even more of a necessity.

9. Prioritize internal mobility

Worker shortages have created a dramatic shift in how we hire. For many HR leaders, this has meant re-focusing efforts inward to identify which employees within the company are ready for their next step.

In the years to come, it will be all about looking inward to identify the skilled workers who can fill gaps within your organization. Shifting the focus to current employees is a sound financial decision that not only benefits the bottom line but re-energizes the recruitment process.

Be open with employees about opportunities for reskilling and check in about where your team members are in their careers. You may be surprised to find that the talent pool you’re looking to draw from already exists within your organization.

10. AI and HR are getting closer than ever

Artificial Intelligence is changing human resources management. AI's power to provide data-driven insights is enabling HR leaders to make recommendations that are more precise than ever before.

By accurately predicting what top talent needs their work and transforming training programs to better suit new hires, AI is adding immense value to the workplace.

AI is not only pushing the boundaries of how HR departments strategize employee retention, but it’s also changing the recruitment process. By allowing teams to prioritize hiring needs and strengthen employee engagement initiatives, AI is disrupting HR.

Looking Ahead...

In 2023, the world of work will look dramatically different than it did even 3 years ago. Technology is pushing the limits of how we work and hr professionals are upskilling like never before to keep up with the demands of the workplace.

Providing work-life balance, fair pay, and an employee experience that centers company core values will be essential for retaining a talented workforce in the years to come. By relying on the best of people analytics and leaning into advancements like AI-based engagement platforms, leaders in HR will transform the future of work in 2023 and far beyond.

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The future of work needs motivated employees. Are you ready to strategize? Talk to our team!