Emerging HR Trends for 2023
We have all witnessed how quickly things have changed in the past few years. Many organizations have re-evaluated how they do business which has resulted in a need to transform their workplaces. Serious concerns have come into focus regarding mental health, physical health, and high levels of staff turnover, as we continue to hear about in the “great resignation.” These are very human issues that require serious intervention by business owners and HR professionals.
Now as we are moving out of the pandemic, existing trends remain while new trends emerge. Here are some key areas for employers to engage and retain their employees.
Flexibility – Where and when your employees work is worthy of some consideration. This can include performing the job remotely if there is no impact to the business. Organizations who have remote work options will be significantly more attractive to qualified candidates. Additionally, many employees have conflicting priorities such as transporting children to/from school, providing care-giving support to their elder family members, caring for pets, etc. If it is possible for your team members to complete their work outside of a scheduled timeframe, allowing flexible schedules is another viable option. Of course, this is not always feasible in some workplaces, but flexibility can involve many aspects. Having honest and thoughtful conversations can help provide suitable options.
Effective Leadership – Effective Leaders are compassionate in their communication, reflective on their actions, and are accountable for their mistakes. They show support for workers across multiple environments, they foster a growth mindset and build an adaptive culture to do things better. They develop leadership in others through team coaching, facilitation, and conflict management. They provide opportunities to grow through performance management and development.
Multi-Generational Workforce – we currently have four generations working together in the workplace. While millennials are continuing to take up a larger portion of staff in most organizations, Generation Z is also now entering the workforce. Combined, both generation demand flexibility, one-on-one time, regular feedback from managers, and to be included in ongoing projects and initiatives. Still, care is required to ensure that other generations (Generation X and Boomers) are also understood with their loyalty, experience, knowledge, and commitment being acknowledged and recognized.
Diversity, Equity, and Inclusion (DEI) – An inclusive workplace allows all team members to feel that they fit in. Team members also want to see equity in opportunities and pay. Therefore, with a hybrid workforce, it is important for leaders to provide equal attention to remote and in-office workers. Having an inclusive and diverse culture can also help increase innovation, productivity, and company revenue.
Prioritizing Employee Wellness – Robust policies and resources are established to focus on employee wellness. This includes everything from providing strategies to maintain good physical and mental health to having Employee Assistance Plans (EAPs) in place. There are also other additional resources such as Niagara Region Public Health, Canadian Mental Health Association, etc.
Employee Investment – This is essential for retention, succession planning, and training and development. Most employees want to continue working for an organization that invests in their development. This includes using various strategies to identify suitable internal vs. external candidates for promotions such as creating development plans to identify areas for training and upskilling, succession planning, mentoring programs, and tuition reimbursement programs, etc.
Generating Pay Increases – Businesses are required to continually reassess fluctuating economic conditions, the labour market, and their salary budgets to remain competitive. This will inevitably attract new talent while retaining your existing workforce.
Importance of Employer Brand – Your organization’s culture and reputation are the basis of determining your successful employer brand. This leads to receiving significantly more qualified applicants which can also reduce hiring costs per candidate. Incorporating the appropriate value system that your employees will embrace in addition to being known as a contributing member of the community helps build your brand.
HR trends will continue to evolve and while these are the trends that are currently important, there will likely be changes new concerns materializing over the months to come.
Whether you are a small business owner or an HR professional, it is important to be apprised of new developments, and adapt your business strategies as needed.