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HR Trends for businesses in 2023

Published 15 Nov 2021

2022 has been a mammoth year for businesses across the world.

Following on from the huge disruption seen in 2020 and 2021, 2022 saw us step into new territory. Despite its ongoing nature, the pandemic did not dictate day-to-day life. We’ve moved into a post-Covid mindset, where our concerns instead are dominated by skyrocketing inflation, economic instability and climate change.

How should HR leaders prepare for what 2023 has in store? Download our free guide now to learn about seven key trends that will shape the year for human resources.

This guide will cover;

  • Offering Financial Wellbeing Tools
  • Focusing on Employee Engagement
  • Adopting Smart Recruitment Tools
  • Reducing the Duration of the Recruitment Process
  • Implementing Corporate Sustainability
  • Seeking Cultural Contribution
  • Offering Ongoing Flexibility

Download the free guide now.

Why is it important for HR leaders to be ahead of HR trends?

HR is constantly evolving in line with business and employee needs. Year to year, HR leaders will be presented with a new group of challenges – and they’ll need a new toolkit of trends and research to face them.

Just this year we’ve seen a slew of workplace trends and news moments that have made a huge mark on working culture. Just think about the Great Resignation, quiet quitting and career cushioning. Employees and industries are always talking; as the world changes, so too does the way we work.

It’s a common mistake for HR leaders to not keep track of trends, but this can keep them from taking the actions they need to stay ahead. When you understand trends you also keep your finger on the pulse of your industry; which means you can stay competitive and build great strategies when it comes to the recruitment and labor market, employee retention, digital HR and employee wellbeing.

What were the biggest challenges HR departments faced in 2022?

2022 was another rollercoaster of a year. For many, it began with a huge wave of the Covid-19 Omicron variant. Who would have thought that almost 12 months later, most of us are thinking about the pandemic in the past tense?

Here are some of the biggest challenges that HR departments faced in 2022.

Covid-19 omicron variant

Just when we thought that the worst of Covid was over, the omicron variant swept through the world in December 2021 to make us eat our words.

Suddenly mass isolation was back on the table, with offices scrambling to revert back to remote working to keep teams safe. Although for many countries it didn’t come with sweeping lockdowns, the omicron variant wreaked havoc on employee physical and mental health, and left employers with lots of difficult decisions to make.

The ‘Great Resignation’

The Great Resignation – the phenomenon which saw a mass exodus of employees from workplaces around the world – was another dominant theme of HR in 2022.

With so much talent movement, staff shortages became the number one issue for many employers and HR departments. To attract and retain staff, many companies had to urgently review their company culture and employee experience to stay competitive.

Our Movement and Retention Report captured key statistics from this time to help employers and business leaders better understand the situation. Download the free report now.

The question of returning to the office

As the severity of the pandemic began to slow and many countries took on a ‘living with the virus’ mindset, discussions around long term hybrid or remote work took the spotlight.

What would the impacts and benefits be for things like work life balance, company culture, workforce diversity and career development? Across industries, the answers remain unclear and will continue to be addressed in the HR trends of 2023.

When we surveyed employees around Australia, we found that 88% wanted to continue working from home for at least one day a week.

A surge in the cost of living

Towards the end of the year, the cost of living has skyrocketed out of control for many countries around the world.

With elements like resource shortages, interest rates, skills shortages and more at play; the prices of everyday goods and services like food and fuel have become increasingly unmanageable for employees and their families. Interest rates are also causing havoc on the housing market, with sellers, borrowers and renters all feeling the impacts.

The cost of living surge marked the beginning of an economic downturn for many countries, with difficult economic times predicted ahead for individuals and companies alike this year.

What should HR professionals focus on in 2023?

In 2023, emerging challenges for human resources include continued recruitment and talent management difficulties, economic uncertainty and an increased need to digitise – with many more to come!

Our trends speak to a few key areas of focus.

Smart recruitment

Forget ‘work smarter, not harder’ – this year’s motto is ‘recruit smarter, not harder’.

Despite a tricky year in 2022, the hunt for talent is showing no signs of slowing down in 2023. Several trends including ‘Adopting Smart Recruitment Tools’ and ‘Reducing the Duration of the Recruitment Process’ reflect the ongoing talent struggles that companies are facing.

While it’s important to work on attracting talent with strategies like a great Employee Value Proposition (EVP), HR professionals shouldn’t overlook improvements in their recruitment process. We’re in an employee’s market, so HR professionals and hiring managers need to think much more about the candidate experience – rather than making them jump through hoops to secure a role.

Financial wellbeing

Many businesses are anxious about the economic outlook, but so are employees.

With the rise in cost of living, employees are feeling the pinch when it comes to fuel, food, power, services and much more. Financial goals are also looking more uncertain as housing and travel prices fluctuate with the stock market.

Our Wellbeing at Work Report found that money is a source of stress for most employees. These pressures can greatly impact their experience at work, causing them to lose motivation or seek external income.

Even in the absence of a salary increase or bonus, there are plenty of things that employers can do to lighten the financial load a little for their teams. Our trends take a deeper look at what HR and employers can do to help big and small.

Great culture

No employer wants to find that their employees are relying on ‘quiet quitting’ to get through the workday.

HR can help remedy disengagement at work by focusing on employee experience and creating a great company culture. That’s why one of our trends this year is ‘Focusing on Employee Engagement’.

Remember, a great culture is not made by throwing a pizza party at the office. Positive company culture creates diversity initiatives, has measures in place to support working parents, engages in active listening to make positive changes, and much more.

Just starting your career in HR and looking to learn more about how you can make an impact? Download our free Intro to HR guide now.

5 reasons HR software can help you stay ahead of key HR trends in 2023

If you haven’t already, is 2023 the year that you take HR digital?

HR software can help you address many emerging trends, not to mention removing HR admin and paperwork from your plate. Here are some of the ways that having a human resources information system (HRIS) can help you run your HR department more effectively in 2023.

1. Amazing recruitment and onboarding tools

Employment Hero’s HR platform includes our incredible Applicant Tracking System which can help you recruit quickly and efficiently.

This recruiting software can assist with the entire recruiting process, from screening potential candidates, scheduling interviews, checking references, and managing the end-to-end hiring process – from attracting star talent right through to paperless onboarding.

Our ATS is cloud-based and integrated with our HR platform, seamlessly connecting with onboarding and employment management processes. Through your applicant tracking system, you have full visibility and easy control over each part of recruitment.

An ATS can help cut down the time it takes to recruit, help your job ads be seen in more places, reduce recruitment admin and provide a central source of truth for all those involved in the recruitment process.

2. Employee engagement made easy

2023 should be the year of the positive employee experience. HR software can help you stay connected to your team, engage with reward and recognition and show overall support for employee well being.

Engage your employees with our easy-to-use tools, and show your team that they are valued everyday.

Our employee engagement suite includes;

  • 1:1s (one-on-ones), easily creating regularly scheduled meetings with templated agendas, and places to leave a confidential feedback and discussion trail
  • Shout-Outs, a company-wide feed that encourages peer-to-peer recognition and the celebration of each others’ successes
  • Employee Happiness Surveys, either use one of our templates or make up your own, and ask your team for feedback around their employee experience and how you can make it better. Results are easy to compile and track and can be gathered anonymously
  • Objectives and Key Results (OKRs), this powerful goal-setting framework can help you and your team members get to where they need to go – by taking ambitious plans and turning them into straightforward actions

+ lots more!

3. Economically effective HR

Employment Hero is the economic way to manage your HR.

Don’t just take our word for it. Businesses who implemented Employment Hero experienced a 291% return on investment by the end of their first 3 years. Additionally, 85% of business leaders agree that Employment Hero makes managing employment easier.

Learn more about the incredible ROI of Employment Hero.

4. Integrated learning management systems

In 2023 workforces need to be agile and ready to learn new skills. Learning opportunities help employees stay engaged and grow the overall knowledge of the business.

Learning management systems (LMS) can help you curate these educational pathways for your team. Whether you’re looking to teach technical or soft skills, Employment Hero’s LMS can help you share, issue and keep track of your employee’s skills as they grow.

Invest in your team and future proof your business. Win, win!

5. Connect employees located anywhere

As the remote working discussion powers on, more companies are thinking about how they can implement remote or hybrid working for the long term.

Cloud-based HR like Employment Hero is your short-cut to all things employment, wherever your company or your team is located. With zero paper-based documents to worry about, you can recruit, onboard, engage with and manage your team all with our online tools.

Looking to broaden your skills based hiring strategies and seek talent overseas? We can help with that too! Our Global Teams service seamlessly integrates with our HR platform and can help you hire and pay team members based all over the world.

Get the latest insight on the HR industry

Ready to discover the HR Trends for 2023? Download our free guide now.

As always, we wish you and your business all the best for a wonderful year!

Download this free guide to 2023 HR Trends now.

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