Trendy HR Challenges to Look Out For In 2023

March 15, 2023

In recent years, the business world has been- and continues to experience various trials and tribulations like never before. From the COVID pandemic, through the global recession, increasing digitalisation to mass employee resignations in the workplace, HR leaders were some of the most challenged, in all aspects. 

In order to help their organisations to adjust in the right way to all these changes and to maintain a skilled, healthy, and productive workforce; HR leaders have to prioritise and promote vital issues like diversity, equity, and inclusion (DEI), employee well-being, and flexible work systems.  With the help of people analytics, these issues are now widely embraced and practised by organisations around the world to enhance business success. Below are the top 5 trendy HR issues to look out for in 2023.

Contents

Employee well-being

Up-skilling and Re-skilling

Diversity, Equity, and Inclusion

Hybrid Work

Skills based Workforce

FAQs 

Employee well-being

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Promoting Employee Wellbeing

Unlike in the past, employees are now better aware of mental health and well-being issues. For instance, in the past year alone about 44% of American employees reported having suffered from burnout in the workplace. 

Poor employee health and lack of wellness programs is an issue of high concern as it creates unmotivated and unproductive employees and to top it all, it affects employee turnover, retention as well as overall business success.  This is because more and more employees now choose workplaces and employers that are more empathetic, and considerate, and those that appreciate and respect employees’ contributions and value in the organisation.

As a result of this trend HR leaders have been inspired to gather more insights from people analytics in order to find ways to confront challenges affecting employee well-being as well as ways to enhance wellness in the workplace.  One trendy way of promoting this is through the initiation of a Chief Wellness Officer role in various organisations.  This individual’s main responsibility is to promote employee well-being and healthy work culture for everyone in the organisation.

There are of course other ways of promoting well-being including launching wellness programs, counseling programs, healthy working conditions, and work systems all aimed at promoting a satisfied and healthy workforce. However, for all these initiatives to work effectively, employers and employees alike have to start by working together to create a good working relationship and culture that sustains both their expectations and needs in the workplace. 

Up-skilling and Re-skilling

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Understanding up-skilling and re-skilling

As the old generation of workers continues to resign in large numbers and a new wave of desperate demand for new talent gains momentum, up-skilling and re-skilling the workforce proves to be a key strategy in enhancing productivity and organisational success. Employers across the globe have realised the need for advanced talent and skills, and more than ever before, they are now focused on skills-building initiatives.

As a way of ending talent shortage and other skills gaps in the workforce HR leaders use up-skilling as a tool to teach employees new skills to help them grow their careers. Another way of increasing talent involves hiring employees with skills adjacent to the ones required by the organisation a strategy widely known as re-skilling. These strategies are not only used by HR leaders, many workers are also using them as a tool to help them find new jobs with flexible working conditions and better pay.

Diversity, Equity, and Inclusion

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Diversity equity and inclusion in the workplace

Another new trend in most organisations is the launch of various policies and work systems aimed at creating a work culture where every employee feels respected, valued, and welcomed despite their previous experience or background. These DEI initiatives and policies embrace the huge role played by having various viewpoints in promoting business success. Organisations with diverse, equitable, and inclusive workforces not only benefit by having diverse ideas and perspectives, but they also gain highly motivated and inspired employees who work hard to produce the best possible results. 

Hybrid Work 

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Understanding hybrid work

The 2019 global COVID pandemic has fuelled the rise of new, more flexible work models such as hybrid work. This new model offers employees a chance to have flexible work schedules that favours better work-life balance and typically result in increased productivity. For instance, people may work part-time remotely and another part at the office or work full-time remotely depending on the organisation’s policy. This trendy model is highly recommended for its role in enhancing employee well-being, increasing the talent pool as well as the overall success of the organisation.

Skills based Workforce

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Skills based workforce

According to recent research studies done by labour data companies, HR leaders are now shifting away from hiring based on qualifications only and towards skills-based hiring. Also, if you take a look at various job advertising platforms like LinkedIn, you’ll realise that nowadays job postings require particular skills and responsibilities from applicants instead of the usual qualifications. Below are some of the reasons why skills-based hiring is a good practice and is on the rise: 

  • It increases the talent pool.
  • It improves retention rates.
  • It increases the quality of the workforce.
  • It reduces hiring costs.

FAQs

What is the main role of HR leaders?

HR leaders are responsible for recruiting, hiring, and offering support to the employees.

What inspired the current trends in HR challenges?

Various factors such as recession, the global pandemic, the fourth industrial revolution and technological advancements have contributed to the rise of the trends seen in the business world. 

What is hybrid work?

A flexible work schedule that allows people to work part-time remotely and part-time at the office or work full-time remotely depending on the organisation’s policy


>> Image credit BPTrends <<

HR leaders and many business executives alike have recognised the benefits that come with having a diverse, well-equipped, and happy workforce. As such, there is a rise of new work systems, policies, and strategies all meant to empower employees and consequently increase business productivity. Hopefully, we will get to appreciate more effective trends as the year progresses.