The year 2023 is almost upon us. While it feels like just yesterday, we tentatively celebrated the turn of 2022, with optimistic hopes that the pandemic would ‘fade away’, the past 12 months have come with fresh new challenges for businesses and civilians alike.
This year saw the Great Resignation continue, with HR leaders struggling to keep hold of, and attract new talent. We’ve also seen huge political turmoil, with three different prime ministers in Downing Street, and an economic crisis with interest rates set to reach a 33-year high. It’s fair to say, 2022 has been a challenging year for many businesses in the UK.
But the festive period often presents a great time to optimise the quiet time, take stock, evaluate, and plan for a successful year ahead. Now, as we look forward to 2023, and HR teams brace themselves for what the new year will bring, we’ve put together a few of our predictions on what could be in store for HR leaders in the next 12 months.
Employee experience
As marketing and sales teams worry about the rising expectations of their customers (customer experience), HR’s concern will be the sentiment of their workforce. Since the Great Resignation kicked off in the UK with a vengeance, businesses have had to pay attention to what employees want, and address those needs and desires or risk losing talent to their competitors. A focus on employee experience has become imperative, rather than a nice-to-have, if businesses want a competitive edge when it comes to retaining and attracting the best talent. Employee experience means better flexibility, work-life balance, a holistic approach to wellbeing, and a recognition and rewards strategy that appeals to the individual, and meets the needs of workers both in the office and at home. As talent acquisition becomes increasingly challenging, businesses must start thinking of their employees as potential advocates, just like they do their customers.
Total wellbeing (and the rise of the wellbeing officer)
At a time when employees say burnout is the number one reason for leaving a job, employers must take this time to scrutinise their approach to holistic wellbeing in the workplace. Stress and burnout have become something of an epidemic. Whether workers suffer from anxiety, ADHD, or other social or learning difficulties, HR leaders must shine a light on how they treat neurodivergent talent as well as support those with workplace stress, taking mental health as seriously as physical health challenges.
In fact, HR leaders will be forced to take mental health in the workplace more seriously in 2023 as it continues to impact their staff turnover. We might also see the rise of the relatively new role, The Wellbeing Officer, whose role is to oversee the holistic wellness of their employees.
More human centricity in management
According to Gartner, managerial skills and leadership development are set to be key concerns for HR leaders in 2023. As many businesses promoted from within to keep hold of key talent or took a risk on new candidates with less managerial experience as a result of the current labour market, many organisations have discovered that upskilling their managers is a priority.
Now, more than ever, managers need soft skills in order to gain the respect of their direct reports, and the genuine human connections that have become imperative in an increasingly digital workplace. HR leaders must therefore put time into ensuring that managers can display the authenticity, adaptability, and empathy needed to develop great future leaders.
Talent acquisition challenges and contingent hiring
As the Great Resignation continues to wreak havoc, businesses anticipate job vacancies to remain open for longer, meaning teams become even more stretched than ever before. As businesses become increasingly open-minded about flexibility in terms of the physical workspace, HR leaders have also opened their eyes to the possibilities of outsourcing, as hiring managers continue to search for more permanent candidates.
The rise of ‘contingent recruiting’ – which means outsourcing to freelancers or consultants gives businesses the low-commitment approach they might need in 2023’s tumultuous labour market.
Higher expectations around financial health
When it comes to supporting your staff right now, promoting financial health is imperative. But while financial health support may have been a nice-to-have before now, as the cost-of-living crisis rumbles on into the new year, employees and new candidates will come to expect better financial perks as standard. As employee expectations continue to skyrocket, HR leaders must at least ensure they cover the basics of competitive salaries, generous pension schemes, and financial rewards and advice for those who want it. Ideally though, to attract and retain the right talent, businesses will go above and beyond, with clarity around bonus schemes, share schemes, maternity and paternity offerings, and investment advice, as workers feel the pinch, and become increasingly savvy with their finances.
Honing the hybrid model in 2023
As businesses get into their groove with hybrid working and acknowledge that this, more flexible way of working is here for the long haul, HR Managers can plan their new year HR strategy around a more digital version of the workplace.
Ultimately, as technology enables everyday work projects, the human element of successful working relationships will be a key theme of 2023, with empathy, authenticity, wellbeing, and genuine connection top of the agenda for another formative year of change for HR leaders.
