Emerging trends and challenges for HR in 2023
Due to the fact that HR deals with humans there are bound to always be challenges. During this year, there has been some of the same challenges arising from previous years but we have also seen some new ones rearing its head.
Let’s look at some challenges for HR that have made headlines during 2022 and upcoming trends for 2023…
Motivational issues
The hybrid model that came along with the pandemic, has surely some pros and cons. One of the biggest hurdle companies face is to keep the employees motivated and engaged. Teams working remotely often find themselves feeling left out or disconnected.
Training in skills
Having a training and development strategy in place is crucial for planning upskilling and reskilling in the new economy. In the past a lot of focus was given to training in technical skills but it has become imperative for leaders to have soft skills such as critical thinking, emotional and social intelligence and most importantly able to communicate effectively.
Attracting talent
Before going into how to attract talent, first it is essential to understand what workers mostly value in a job. Companies and HR departments need to dig deeper and offer meaningful experiences and a greater sense of purpose to potential employees.
Diversity
More and more employees want to work for companies that value diversity and offer everyone a sense of belonging.
Talent retention
One of the biggest downfalls for a company is to not have exit interviews in place. This is one of the best ways for HR to get insight into why employees are leaving and what changes are necessary within an organization to retain talent.
Change is inevitable
Employees have had a taste of what it is like to work from home and have the flexibility that remote work arrangements offer. Companies need to take this into account if you want to ensure that you retain and attract talent.
Health and well-being
An employees’ productivity largely depends on mental wellbeing. To respond to one of the most pressing issues for HR beginning from 2020, some forward thinking companies are offering better, more varied benefits for their employees. Especially, training for both managers and workers to improve knowledge, attitudes, and behaviors toward mental health is now considered as a priority.
Flexibility
In 2023, flexibility will be one of the benefits that employees are now expecting to be part of their employment contract and is a vital part of attracting talent.
Generation Z vs. the existing workforce
Although Millennials have been entering the workforce over the last couple of years, generation Z will soon be graduating and entering the workforce. This generation enjoy flexible work schedules and thrive on constant contact with and feedback from their managers. It will be challenging to manage the new generation and the current workforce that have been in the market for a long time. Doing this remotely will be made even more challenging.
Investing internally
Companies are focusing heavily on retaining talent, therefore investment in training programs and internal advancement opportunities has started rearing its head. The challenge for HR is to be able to identify internal talent and growth instead of looking for them externally.
Record pay rises
Employees’ expectations have risen in direct proportion to the current record-high inflation rate. Therefore it is important for the HR team to plan for the expected increase in company raises to ensure that they retain good talent.
Owning the employer brand
It is important to have a powerful employer brand to attract and retain best talents in today’s competitive labour market. Giving focus on careers sight, having a talent community and nourishing company culture and able to grow a sophisticated attraction strategy is some of the things the companies will have to focus on for 2023.