by Hr Day 2023 – 2023 brings a changed world of work. The pandemic pushed digital transformation four years into the future and changed the relationship between workers and employers. While HR has been at the forefront of changes and crises in recent years, they are at risk of missing the boat in this fundamental change in the way they work.
We believe that 2023 is the opportunity for HR to reposition the value proposition of the role in the post-pandemic reality. Human resource professionals have played an important role in guiding organizations through the storm of the pandemic and the subsequent rise in inflation and economic recession. In other words, HR can have a tremendous impact on organizations when activated properly.
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We have identified 11 HR trends that we expect will shape the workplace by 2023. Some trends have been around for a while, but recent developments have accelerated. Many are the result of drastic changes that organizations have had to make, and in some cases they are still struggling.
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There is a silent crisis in the organization. According to the American Psychological Association (APA), almost 3 in 5 workers have reported adverse effects of stress at work following the pandemic. 87% of Americans are worried about inflation, and 7 in 10 workers are worried that their wages have not kept pace with purchasing power.
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The HR department is also affected. The function played a key role during the pandemic that took its toll. Workvivo research found that up to 98% of HR professionals say they feel burned out at some point in the past six months.
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Our first HR trend for 2023 is for organizations to take more responsibility for this looming employee burnout crisis across the enterprise. First, because it is a good thing, and second, because it endangers the continuity of the organization.
The first step will be for HR to overcome its own burnout crisis. While this may be against the nature of HR, which should focus on helping others, HR professionals must first put on their own oxygen mask. Otherwise, the department cannot help the rest of the organization.
Accordingly, we expect HR to evolve towards a more proactive approach to wellbeing and resilience. This includes developing a more holistic approach to employee well-being that focuses on mental, physical and financial well-being.
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All in all, HR in 2023 will focus on different aspects of well-being, starting with its own aspects. 2. Managing the employee ecosystem
While HR has traditionally focused on permanent employees, other types of employees, such as entrepreneurs, laborers and employees working for supply chain partners, are playing an increasingly important role in the provision of services of the organization.
Only in the United States, 16% of Americans made money from gig platforms. According to the ADP, in about 40% of companies, one in four employees is a do-it-yourselfer. This means that a large part of the entire workforce is left unassisted and HR is missing the opportunity to make a difference.
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We believe that 2023 is the year when HR will begin to manage the complex ecosystem of the workforce beyond permanent employees. This has three implications.
First, the human resources department is actively involved in the management of its temporary workers. You will integrate contractors, workers and external collaborators into the HR value chain. This is a must not only from a value creation perspective, but also from a risk perspective. HR’s current, often distant attitude towards temporary workers creates a dual workforce that even top companies like Google struggle to manage.
Second, in today’s platform economy, HR can help create a more diverse workforce ecosystem by creating value for external contributors.
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Uber is the largest driverless taxi company, Airbnb is the largest hotel chain without real estate, while platforms such as YouTube, Netflix and TikTok outsource most of their content creation. These companies depend heavily on their contributors. Human resources are tasked with making these contributors a part of their employee practices.
The (post)pandemic era has shown how important value chains are from a production and reputation perspective. Rihanna’s fashion brand Fenty Beauty has been accused of using child labor in its supply chain.
HR may not be the driving force behind partner decisions, but it offers a unique opportunity to reinforce best practices for people throughout the supply chain.
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Examples of initiatives we expect to see more of in 2023 include building communities of experts, mentoring programs for experienced HR professionals and job rotation across the supply chain. Business is not a zero sum game, especially when it comes to partnerships. This is an area where HR can add tremendous value through workforce ecosystems.
Work has changed over the course of the pandemic. According to McKinsey, the pandemic has accelerated digital transformation in organizations by three to four years. And the employees have adapted accordingly. For example, LinkedIn data shows that remote jobs, which account for about 20% of all jobs on LinkedIn, received more than 50% of all applications!
This illustrates that resistance to some degree of flexible working puts companies at a competitive disadvantage. Not all organizations have realized this and continue to cling to outdated strategies that previously made sense. For example, 95% of managers believe that employees should be in the office to maintain company culture. A study by Nature Human Behavior also found that collaboration between Microsoft employees has decreased by 25% and has become more isolated in a remote environment compared to pre-pandemic levels.
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Despite this, 64% of employees plan to quit if they are expected to return to the office full time. Hybrid work has become part of the modern work culture and I believe that companies like Goldman Sachs and executives like Elon Musk are fighting a losing battle.
Employees want clear communication and modernized policies. By 2023, we expect HR professionals to establish clear policies on how, where and when work is done. They will facilitate internal conversations on this topic and push your organization to make decisions, even if it is temporary, as organizations explore different work strategies.
HR professionals are also teaching themselves and managers how to overcome proximity bias, an unconscious tendency to favor employees often seen in the office over remote workers. You will work to establish objective performance metrics, promotion and salary increase criteria.
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So HR will reinvent the office role. A clear work policy influences the planning and use of the office. This leads to better equipped work spaces, flexible spaces to counter possible loneliness at home, and work allowances to improve home facilities.
Last but not least, HR itself will become more hybrid and explore remote work. HR has a leadership role to enable better results from remote work, and we expect that to happen much more in 2023. 4. The changing role of the CHRO
In times of crisis such as the COVID-19 pandemic, the start of the war in Ukraine and rising inflation, the Council has turned to the CHRO for leadership and response. Therefore, HR has been in the spotlight since the beginning of 2020. In most organizations, the CHRO has led discussions in board meetings on policy, business continuity and security and employee productivity.
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In addition, the CHRO is responsible for key environmental, social and governance (ESG) objectives. Increasingly ambitious ESG goals and the interest of investors in companies with this focus allow the CHRO to take on this topic.
Added to this is the evolving role of the CEO. According to the 2022 Edelman Trust Barometer, employees trust their CEO more than government leaders, journalists or other CEOs. Additionally, 60% of employees expect their CEO to speak out on social and political issues that affect them. This evolving CEO role gives the CHRO scope to understand employee moods and advise the CEO on when to speak and what to say.
Given these factors, we expect 2023 to be the year in which the CHRO cements its position as an indispensable part of the Board and a key advisor to the CEO. 5. HR enters the metaverse
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Gartner predicts that by 2026, 25% of people will spend at least an hour a day on the Metaverse. This means that leading organizations in this area will use 2023 as a launch pad for some of these activities, including virtual events, employee onboarding, career fairs and meetings.
There is also the opportunity to use the Metaverse for learning and training on the job. Meta is investing $150 million to create an immersive learning ecosystem that will make learning on the Metaverse more accessible.
The few organizations that exploit the potential of the metaverse will have a more modern employer brand, more interesting interactions with remote candidates, and potentially even increase organizational productivity.
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We believe that in 2023, a select group of organizations will differentiate themselves by investing in the Metaverse. This includes not only large companies with custom Metaverse environments, but also innovative small businesses using virtual workspace software.
MR
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