1/6th of 2023 is over and while the world is moving at a breakneck speed, the adaptation of HR to this rate of change is relatively slow.
Why do I say this?
Some HR trends have emerged during the pandemic and are here to stay. Others are emerging slowly as we speak.
Enjoying a leisurely read on the same topic, I came across other pages and organisations that support these findings.
Here are 3 major trends for the human resource enthusiasts to watch out for in 2023 and beyond, in my opinion.
#1: Balance
Gone are the days where employees commit to working at the beck and call of employers without questioning them and working extra shifts no matter the cost on their lives, their goals and their health. Work-life balance is the buzz phrase all the way!
Stress is a very real thing. It has been found that close to 50% of Gen Zs and close to 45% of Millenials find themselves stressed most of the time, which invariably impacts their productivity and contribution at work (Deloitte Global, 2022).
Forbes reports in a recent article (Meister, 2023), that the U.S. Department of Health & Human Services has found around 81% of U.S. workers they had surveyed prefer to look for workplaces that support their mental health (ASH Media, 2022). This comes at a time where quiet quitting and anti-work movements have become a negative trend impacting businesses (Haak, 2022). This is because work is made to seem too important, and shortcomings are not looked upon with empathy.
Recent findings show that the United Kingdom grapples with the loss of 131 million working days, which costs the country around £ 180 billion of their GDP due to health issues of their workforce (CBI, 2022). In light of this, the CBI in collaboration with Business for Health, the NHS and the Government has launched a Work Health Index (WHI) with the aim of benchmarking provision for private sector health in their economy (Woods, 2023).
Another development in this area is the creation of a new position of a 'Health and Wellbeing Officer' for organisations within the human resource management divisions. This role would closely monitor and take steps to support employees to create a safe space for themselves within the work place, where they feel valued and cared for. It recognises the employee as more than just a worker. Delta Airlines and Unilever are two companies that I came across when reading about this.
To prioritise wellness and create a role dedicated to it takes cognisance of the employer's responsibility to do more, and that employee wellbeing is not a one-off annual checklist item for HR.
The Global Business Collaboration for Better Workplace Mental Health is an interesting business-led initiative that has emerged in this area (City Mental Health Alliance, 2023).
Similar to employee wellbeing, employee experiences are at the forefront of creating better workplaces. Companies are seen to be taking notes from user/customer experience designing (UX and CX) and implementing systems for employee journey mapping and developing products that reinforce the employee-centric model (Reitsma, 2022).
It is important to note that ensuring work-life balance goes beyond a mere hiring strategy. It would do good to keep in mind that it would be key to retaining the best talent with the company for years to come as well.
#2 Flexibility
McKinsey reports that the pandemic has accelerated the way we do business by three to four years, at the very least (McKinsey & Company, 2020). While consumers have dramatically moved their consumption patterns online, businesses have jumped on the bandwagon equally in response.
Exhibit 3 above shows the fast adoption of remote working in line with the increase in demand for online purchasing/services. Surveys show that these large scale changes were likely to stick then, and have certainly stuck around.
Not too long ago, online insights from LinkedIn in August 2022 supported this stance as data showed 63.6% of applicants applying to at least one remote job, which is a dramatic increment from 39.9% recorded in August 2021 (Fowler, 2022).
The above graph depicts the remote job posts vs applications on LinkedIn in September 2022, which demonstrate they are popular around the world. Glassdoor's Word of the Year in 2022 for the U.S. was 'Return-to-Office.' There was significant push back from employees to return to work (Richard, 2022).
These provide a couple of indications for HR. One being, companies that resist remote working or fail to meet employees' flexibility needs halfway will be at a competitive disadvantage. Second being, candidates are driving the point that they would rather take up flexible jobs that they could perform from the comfort of their homes. Third being, employers are more likely to feel the pressure to broaden their remote working/ hybrid working policies. Fourth being, employees could be faced with demands for higher pay and facilities from candidates who do choose to take up in-person positions. Fifth being, facilitating better remote and hybrid working policies have the potential to attract a global pool of diverse talents at great prices.
#3 HR Tech
Technology has integrated itself into every aspect of our lives. The Metaverse is now reality. There is no longer a waiting period to experience what it is like. It is here.
Here are some of the ways HR Tech has emerged and the solutions they offer.
- Talent intelligence platforms- AI-powered platforms that will assist HR with data driven assessments, sourcing, talent matching, and designing job roles (Mazumdar, 2023).
- Intelligent Workspace Management- AI-powered scheduling of meetings, setting up conference rooms like you would a physical space (Mazumdar, 2023)
- Employee Experience Platforms - AI-powered employee journey mapping, career development tracking, employee learning
- HR Metaverse - Virtual meetings, onboarding, career fairs, virtual trainings, virtual conferences. Erik van Vulpen for Forbes terms the Metaverse as a "more authentic" kind of remote work (Vulpen, 2022)
- Using AI and Predictive Analytics tools to meet HR and overall company objectives (Sharma, 2023)
- Using Neurotech solutions to develop a more responsive working environment, increase productivity and workplace safety, monitor fatigue, and reduce stress at work etc (Farahany, 2023).
Using HR Tech, companies can work towards creating a more equitable and collaborative work space. HR has a key role to play in its adoption and use by organisations. This includes advising on policy changes pertaining to hiring virtually; addressing internet accessibility issues of the workforce; as well as privacy, workplace safety and inclusivity in the digital work space.
Conclusion
The pandemic has shown that HR is as important as any other core function of an organisation. To stay competitive and relevant, HR must embrace technology and allow it to augment its function. It's time to utilise data, analytics and technology to create a progressive and flexible workplace that can adapt to the future without further delay.
Reference List
Deloitte Global (2022) The Deloitte Global 2022 Gen Z and Millennial Survey. [online] Available from https://www.deloitte.com/global/en/issues/work/genzmillennialsurvey.html [Accessed 4 March 2023]
Meister, J. (2023) Top Ten HR Trends For The 2023 Workplace. [online] Forbes. Available from https://www.forbes.com/sites/jeannemeister/2023/01/10/top-ten-hr-trends-for-the-2023-workplace/?sh=7e608bd85933 [Accessed 4 March 2023]
ASH Media (2022) U.S. Surgeon General Releases New Framework for Mental Health & Well-Being in the Workplace. [press release] Available from https://www.hhs.gov/about/news/2022/10/20/us-surgeon-general-releases-new-framework-mental-health-well-being-workplace.html [Accessed 4 March 2023]
The pandemic has shown that HR is as important as any other core function of an organisation. To stay competitive and relevant, HR must embrace technology and allow it to augment its function. It's time to utilise data, analytics and technology to create a progressive and flexible workplace that can adapt to the future without further delay.
Reference List
Deloitte Global (2022) The Deloitte Global 2022 Gen Z and Millennial Survey. [online] Available from https://www.deloitte.com/global/en/issues/work/genzmillennialsurvey.html [Accessed 4 March 2023]
Meister, J. (2023) Top Ten HR Trends For The 2023 Workplace. [online] Forbes. Available from https://www.forbes.com/sites/jeannemeister/2023/01/10/top-ten-hr-trends-for-the-2023-workplace/?sh=7e608bd85933 [Accessed 4 March 2023]
ASH Media (2022) U.S. Surgeon General Releases New Framework for Mental Health & Well-Being in the Workplace. [press release] Available from https://www.hhs.gov/about/news/2022/10/20/us-surgeon-general-releases-new-framework-mental-health-well-being-workplace.html [Accessed 4 March 2023]
Haak, T. (2022) HR Trends for 2023: a Sneak Preview. [online video] Available from https://www.youtube.com/watch?v=mZghgqtHfrk [Accessed 4 March 2023]
CBI (2022) Boosting workforce health can help the UK achieve economic growth ambitions, says CBI. [online] Available from https://www.cbi.org.uk/media-centre/articles/boosting-workforce-health-can-help-the-uk-achieve-economic-growth-ambitions-says-cbi/ [Accessed 4 March 2023]
Woods, T. (2023) UK businesses must champion health & wellbeing in 2023. [online] Available from https://www.fenews.co.uk/exclusive/uk-businesses-must-champion-health-wellbeing-in-2023/ [Accessed 4 March 2023].
Healthiest Employers (2021) #4 Delta Airlines – Healthiest 100 Workplaces in America. [online] Available from https://www.healthiestemployers.com/post/4-delta-airlines-healthiest-100-workplaces-in-america [Accessed 4 March 2023].
Unilever (2023) Employee health and wellbeing. [online] Available from https://www.unilever.com/planet-and-society/responsible-business/employee-wellbeing/ [Accessed 4 March 2023]
City Mental Health Alliance (2023) The Global Business Collaboration for Better Workplace Mental Health [online] Available from https://betterworkplacemh.com/about/ [Accessed 4 March 2023]
McKinsey & Company (2020) COVID-19 digital transformation & technology [online] Available from https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/how-covid-19-has-pushed-companies-over-the-technology-tipping-point-and-transformed-business-forever [Accessed 4 March 2023]
Fowler, B. (2022) Has Remote Work Peaked? [blog entry] 7 October. LinkedIn. Available from https://www.linkedin.com/pulse/has-remote-work-peaked-get-hired-by-linkedin-news/ [Accessed 4 March 2023]
LinkedIn Talent Solutions (2022). Global Talent Trends 2022: The Reinvention of Company Culture. [online] Available from https://business.linkedin.com/talent-solutions/global-talent-trends [Accessed 4 March 2023]
Richard, J. (2022) ‘Return-to-Office’ is Glassdoor’s 2022 Word of the Year in the U.S. [online] Available from https://www.glassdoor.com/research/word_of_the_year_us_2022/ [Accessed 4 March 2023]
Mazumdar, N. (2023). Emerging HRTech categories for 2023 by Josh Bersin [online] Available from https://hrsea.economictimes.indiatimes.com/news/industry/emerging-hrtech-categories-for-2023-by-josh-bersin/96682828 [Accessed 4 March 2023]
Sharma, S. (2023) Top 5 workforce management trends for 2023 [online] Available from https://hrsea.economictimes.indiatimes.com/news/industry/top-5-workforce-management-trends-for-2023/96913392 [Accessed 5 March 2023]
Vulpen, E. (2022) Three Ways The Metaverse Could Transform HR. [online] Available from https://www.forbes.com/sites/forbeshumanresourcescouncil/2022/06/03/three-ways-the-metaverse-could-transform-hr/?sh=195a825c6db4 [Accessed 5 March 2023]
Farahany, N. A. (2023) Neurotech at Work [online] Harvard Business Review. Available from https://hbr.org/2023/03/neurotech-at-work [Accessed 5 March 2023]
Amazing write-up!
ReplyDeleteThank you for your kind feedback. Would you like to see any specific areas from this article addressed separately? Please reply here with your suggestions and I will surely take it up.
DeleteThese trends are important, and insightful, and very well presented. But don't you think coping strategies for the advent of AI should be included here? I think many roles involving repetitive tasks will be displaced by AI. How can HR help to bridge seamless transition in this case? Will it involve layoffs or the redistribution of human capital to where they can add more value?
ReplyDeleteThanks for engaging me with such intriguing questions. On the first question regarding coping strategies, yes, I do think they are relevant and an extremely timely requirement that needs to be provided for by companies who intend to retain their employees in the long run. The role HR plays in this is significant, because they must proactively identify the need to have in place programmes that will address these issues and communicate it to their Boards. On the second question regarding job displacement, you are correct, jobs that perform routine, repetitive tasks are at a risk of job displacement due to automation, in fact it is already happening. This will come with lay offs and redistribution of human capital, no doubt. However, HR can look at methods to retrain and upskill the workforce on a first level, before going for extreme measures such as lay offs.
DeleteHow do you think HR tech and other uses of AI would breach ones privacy concerns?
ReplyDeleteI believe that is pretty much a given at this point. Read this article by Professor Nita Farahany on this : https://hbr.org/2023/03/neurotech-at-work
DeleteThis is an interesting article Thanuki. I am keen on HR tech. As you have mentioned too, HR tech, or human resources technology, is an emerging field that combines the use of technology with HR practices to streamline and optimize human resources management. I read more about it and according to a report by Deloitte, the global HR tech market is expected to grow by 11% annually, reaching $30 billion by 2025 (Deloitte, 2020). Some of the most popular HR tech solutions include talent acquisition software, performance management tools, and employee engagement platforms. These tools help organizations automate HR tasks, improve communication with employees, and collect and analyze data to make informed decisions. Additionally, HR tech can help reduce bias in hiring and increase diversity and inclusion in the workplace (Bersin, 2019). With the increasing demand for remote work due to the COVID-19 pandemic, HR tech has become even more crucial in supporting virtual collaboration and communication among teams (McKinsey & Company, 2020). As HR tech continues to evolve and integrate with other technologies such as AI and machine learning, it is likely to play an even greater role in shaping the future of work. This will definitely improve the quality of work with more efficiency and effectivity.
ReplyDeleteThank you for engaging with my article, Lasni. Like you have read and observed, HR Tech is playing an important role in organisational contexts presently. It is definitely making life easier for those in HR. With time, it will become more commonplace. A point of concern however would be employee privacy. HR Tech requires configuration that will not cause privacy infringements. How this will happen, is something we are yet to see.
DeleteYes, there is something for us to wait for and see how these trends work and the outcomes.
DeleteAbsolutely! Excited to see what the future holds.
DeleteVery well scripted. I personally know and agree on the benefits of remote working. Companies now shifting to a hybrid system is also a factor that would play a part in employee retention. Return-to-office concept is the talk of the town currently but an hybrid system would be always appreciated.
ReplyDeleteThank you for your kind feedback, Kabilashini. Yes, remote working is an excellent way for employees to gain more exposure and experience in their preferred fields. The one concern I have had however is whether remote working promotes an 'always on' work culture, which could be detrimental to the work-life balance we have sought to achieve.
DeleteHi Thanuki, great initiative. As you mentioned HR Tech, and artificial intelligent systems have emerged, and it offers solutions in order to build an equitable and collaborative workspace. But this can generate more unemployment in the future as well right?
ReplyDeleteHi Piumi, thank you for your comment and question. Getting right into it, it most certainly will displace certain types of jobs in the future. Especially those that perform routine, repetitive tasks. This is a call to employees to start thinking outside the box and work towards acquiring some unique skill that they could contribute to their workplaces. It is important to stay relevant now more than ever.
DeleteYeah, now it's getting very challenging to retain & grab a job in the job market with these innovations. The labour force needs to find ways to improve their technological background in order to sustain in the future job market.
DeleteThe data from the topic 'balance' shows work and life balance index of US work force's database
ReplyDeleteWhat's your view on global term and specially Sri Lanka which may show a different view.
I have noticed gulf situation. There the rate of job seekers level is high compare to previous years and those who looking for a job, they are ready to take any job irrespective of their qualification. In that case by willing or not, they are forced to work overtime and stressful environment
Good observation Azeem. From my reading, I have come to understand that the conversation on work life balance has evolved and is evolving drastically across the globe. Even in Sri Lanka, I am seeing quite a few initiatives by organisations to ensure this balance. For example, I recently came across a law firm in Sri Lanka that provides day care facilities for children of lawyers who work there (Refer this: https://www.ifc.org/wps/wcm/connect/c2dfcbd9-270d-40b8-9c41-2334df2383f2/FJG_de_saram.pdf?MOD=AJPERES&CVID=mutdeb8). This undoubtedly empowers women to work more freely without having to be stressed about finding a nanny for their children, or having to leave work early. Home is a few meters away from your desk and does not let you lose touch of your relationship with your children. This is just one example that came to mind.
DeleteRegarding the issue of job seekers, I believe that has more to do with macro economic factors that drives them to seek other options for themselves, coupled with the unfortunate circumstances of falling into workplaces which do not value the concept of work life balance as much. Like I said, it is an evolving notion. We are yet to see some regions take this concept more seriously in their company policies.
Great article. The pandemic has opened the eyes of organisations, and have given new perspectives moving beyond conventional norms beyond the usual physical 9 to 5.
ReplyDeleteThank you for your kind feedback. Yes, the pandemic definitely changed the way organisations approached doing business and workplace culture. It contributed a great sense of flexibility which organisations were lacking.
DeleteA good read Thanuki, the observant is correct but my personal view is that it would be much better if the implementation to the ground level is touched.
ReplyDeleteThank you for your kind feedback, Chathura. I believe that the implementation aspect has been touched upon at different points of this article, though not under a separate sub-heading.
DeleteVery detailed article Thanuki . The shift toward skills-based hiring will accelerate in 2023 as skills emerge as the currency of the labor market HR professionals should make the people at their organization their main focus in 2023. Employee and workplace well-being, DEI initiatives, employee development and retention, and the collaboration of business and HR leaders are the trends that are poised to define 2023.. Flexibility is the ability to choose one's work schedule and it no longer means just working remotely. It can mean working four or even three days a week, while working longer hours each day.
ReplyDeleteThank you for your kind feedback and comments Nilushi. Interesting insight regarding flexibility of work. I recently read that UK had trialed the four day work week between June- December 2022 and more than 90% participating businesses have opted to continue with it (Ellerbeck, 2023). Several European countries are either in the trial phase or have adopted it already. Belgium is an example for the latter.
DeleteLinks:
1. https://www.weforum.org/agenda/2023/03/four-day-work-week-uk-trial/
2. https://www.euronews.com/next/2023/02/23/the-four-day-week-which-countries-have-embraced-it-and-how-s-it-going-so-far
Very Impressive Article.It has provided a comprehensive overview of three key trends that human resource professionals need to be aware of in 2023 and beyond. Its include work-life balance, flexibility, and HR technology also highlights the importance of creating a safe and caring workplace that supports employees' mental health, encourages work-life balance, and provides flexible work options. I enjoyed reading this impressive article.
ReplyDeleteThank you Eashan! Of course, there are a heap of trends for the HRM function of an organisation to keep abreast of. I believe it is difficult to cover all of it in a single read such as this. I chose to focus on a few trends that called out to me. I am glad it kept you engaged.
DeleteHello! Thank you for your kind words. In response to your question, HR Tech and artificial intelligent systems have recently become available and are being used to create a more collaborative and fair work environment.
ReplyDeleteThank you for your kind feedback, Lalindra. I agree with your observations on HR Tech and AI being used in HRM. I believe that these will only increase in usage in time to come, bringing more challenges along with them.
DeleteYou have emphasized the crucial part that human resources (HR) play in maintaining an organization's competitiveness and relevance, particularly in light of the pandemic.
ReplyDeleteYou correctly underline the significance of utilizing technology to enhance HR's role. HR managers can design a progressive, flexible workplace that can change with the times by utilizing data, analytics, and technology. Given the quickly evolving business environment and the necessity for businesses to be flexible and responsive to new problems, this is essential.
HR may be a key player in establishing a workplace that is prepared to face future challenges by utilizing technology and data. Good work!
Thank you for your kind feedback and keen observations, Nadeer.
DeleteThank you for the great article. It's always valuable to stay updated on the latest trends and best practices in the HR world, and your post clearly highlights some of the key areas that organizations should be focusing on.
ReplyDeleteIt would be valuable to explore the intersection of HR trends and the gig economy. As more individuals are turning to freelance and contract work, understanding how organizations can adapt their HR practices to better manage and engage a fluid workforce could be an essential topic for many businesses. Sharing practical advice on integrating gig workers into a company's culture and leveraging their skills for long-term success could be a great addition to your insightful content. Hope to see some of these in your future work!
Thank you for your kind feedback, Prasadi. I agree that the discussion of the gig economy is an interesting one. In my opinion, it is quite tricky to handle the role of a gig worker to begin with, because they function as independent contractors, and it is harder to retain them within the talent pool of an organisation. Striking a balance to ensure that HRM does not alter the nature of the gig worker's role is quite challenging, I believe.
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