3 HR Trends For 2023 Every Company Must Be Ready For

For the past few years, the global pandemic has dramatically reshaped the world of work and caused major shifts in the human resource industry.

With more and more employees demanding different needs, one thing is sure - HR has shifted towards a more human-centric approach. Below, we list out 3 emerging HR priorities and trends to focus on for the year ahead.

#1 Cultivating a People-first culture

HR is no longer just an administrative role but one that is crucial in understanding and empowering employees to attract and retain great talents. The undeniable truth is that employees are no longer hesitant to jump ship when faced with a toxic work environment - and it’s mostly your high-performing talents who leave first, as seen in the Great Resignation dated back in 2021.

That is why people-first cultures continue to grow in popularity and remain in the top HR trends in 2023. But to attain this ideal culture, employers and HR leaders need to recognize signs of workplace toxicity and develop action plans to address them.

Key questions to look into to improve workplace culture:

Are your employees’ suggestions valued? Is your company providing real feedback opportunities?
Is there a high level of micromanaging where employees are given little or no autonomy over their tasks?
Are your employees’ efforts or talents recognized?
Has overworking become the norm? If so, what should be done - to mitigate or to reward?
How often does the management communicate with its employees? Do you have one-on-one meetings with your employees?

Once you’ve answered these questions, work towards improving every aspect and be sure to walk the talk.

#2 Building an effective hybrid workflow

Working remotely was undeniably an uncommon practice in the past. But as result of the global lockdown revealed an unexpected surprise - employees were found to be more productive and efficient when working in a remote or hybrid work arrangement.

According to a study by Cisco:

86% of Malaysian workers say the implementation of hybrid work has made them happier as opposed to the conventional office-only model
80% of employees saw improvements in their overall well-being, where 82% stated they were able to save more money, and 72% have become physically fitter, if not healthier.
79% saw an improvement in work-life balance, with 80% indicating strengthened family relationships

While employees continue to prefer the hybrid work lifestyle, only 20% of employees in Malaysia believe their company is truly prepared for hybrid work. Of course, the company's nature plays a role in determining whether a hybrid model would work. Nevertheless, it is clear that the flexible work model is the future of HR. So if companies do not adapt, sooner or later, employees will jump into organizations that enable that.

Some key approaches that may help for the transition into the hybrid workflow:

The occasional office approach: Employees are required to work in the office when necessary, for instance, on days when they have discussions with clients.
The 3-2 model: Employees can work from home for 2 days or vice versa.
Digital collaboration: Adopting collaborative platforms to manage more efficiently

#3 Supporting employees’ mental health & wellbeing

Burnout and stress are still very much prevalent, especially in workplaces. But unfortunately, quick fixes like seminars or workshops seem to be the most implemented tool to address the problem.

The key, however, lies in getting to the root cause of the issue. Ask yourself - why are your employees feeling burned out or stressed? Could it be financial situations, workflows, or culture? These may be sensitive topics to ask, but you can anonymize feedback to reduce the pressures. This way, employees can be more open about their struggles and feel more appreciated when action plans are implemented.

Employees' mental, physical, and financial well-being still proves to be a crucial trend for better efficiency and higher employee satisfaction, ultimately leading to retention.

Getting a head start for 2023

2022 was no doubt a year of reconstruction and experimentation. But as 2023 approaches, HR leaders and companies must accept that we are moving into the new era of people-first. Employees are no longer searching for just high-paying jobs or attractive benefits anymore. They’re also setting the workplace culture as a key deciding aspect. They want their voices heard and their mental well-being prioritized. So it is important for HR leaders to commit to actions that retain their employees in the long-term, that is, by listening, establishing mutual trust, and leading with transparency and understanding. Strive to create an environment where employees feel they are valued.

What do you think will be the key HR trends in 2023? Share your thoughts in the comment section below!