3 Changes to HR in 2023

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The role of a Human Resources Manager looks a lot different today than it did just a few years ago. The responsibilities have shifted, as have the workplace landscapes. And the future of HR is going to depend on your company’s ability to adapt and grow in these new directions. HR in 2023 calls for a new playbook. And to ensure your HR teams remain flexible with emerging trends and diligent in connecting employees to career paths with brands they love, these are the insights you need to know. These are the three ways HR is changing the most.

1. Internal HR Changes

Some of the most notable changes in human resources will take place internally. Consider examining your current HR processes, internal structure, and policies. You might spot possible areas of improvement based on these emerging HR trends and changes.

Internal Organizational Ecosystems Will Change

Organizational design structure and change management will be a priority for HR in 2023. In fact, 53% of HR managers and 45% of their staff say they’re already experiencing fatigue from all the change. Chances are, your HR teams are fatigued, as well. New digital adoptions, changing workplace dynamics, and economic stress affect employees and leaders at every level. To provide relief, many HR teams are now focusing on changing up the ecosystem and prioritizing change management to minimize employee fatigue and disruption. Too much change or uncertainty, left unchecked, will lead to high turnover and reduced productivity.

HR Budgets Will Increase

Another change that will remain evident throughout the future of HR is the budget. Most HR executives say they anticipate increases in their organizational budgets. And many say those boosts in spending will be a sizable 4% to 6%. Those increased HR budgets will mostly be dedicated to efforts related to expanding the workforce, too. Recruiting and onboarding represent the biggest budget increase, while employee compensation drives investment increases as well.

Based on current HR management surveys, the top three priorities within recruiting and retention that call for bigger budgets include:

• Finding and recruiting applicants from broader talent pools
• Retaining the best employees
• Maintaining and improving company culture, morale, and engagement

2. Employee Wellness Is a Priority

Another key shift you’re going to see in the future of HR involves prioritizing employee health, wellness, and experiences. A company’s employee retention strategies are more important now than ever before. And while more traditional methods of HR involve enforcing guidelines and managing strict procedures, today’s HR professionals are looking for better ways to engage and support employees.

Employee Experiences Matter

The employee experience matters, and today’s HR managers recognize changes are needed to improve the workplace culture. In fact, roughly 47% of HR managers say significant changes have to happen to transform the employee perspective. Employees will only remain loyal and productive to their employers if they feel there is a compelling career path before them. And if at any point they feel devalued or disposable in any way, they’ll seek employment elsewhere. HR leaders are exploring these three areas the most to introduce improvements to the employee experience:

• Expanding health, mental health, and wellness initiatives
• Developing healthier food and affordable menu selections
• Creating more educational programs to support and incentivize learning, certifications, and skills improvement

Flexible and Hybrid Work Environments Are the Norm

Your HR teams are already keenly aware of the need for hybrid work flexibility wherever possible. Of course, some roles are only effective with in-person or on-the-job reporting. But those departments and staff who can be just as productive or more productive working from home will need employers to accommodate those hybrid dynamics. And when your employees are working from home, the accountability and productivity metrics will need to change, too. Your HR leaders can expect to abandon any micromanagement efforts of yesterday and adopt new ways for off-site staff to remain accountable and productive.

3. Changes in Attracting, Hiring, and Onboarding New Talent

The third massive change in human resources to consider involves a slew of new perspectives and methods relating to hiring. Today’s recruiting landscape is vastly different from years past. And if your company needs top talent to facilitate growth and scaling, you’ll have a new playbook to adopt outlining improved methods for attracting, hiring, and onboarding new employees.

Skills Carry More Value Than Degrees

Your company might need to revisit job descriptions and role prerequisites. Recent studies suggest skillsets carry more value to employers today than traditional degrees or certified education. In fact, skills-based hiring has been up more than 60% in the last year. Make sure your hiring managers are placing enough value on candidate experiences without automatically disqualifying candidates who maybe lack a four-year degree. Focusing on skills will also help you to remove salary or career barriers for some two-thirds of the working population that doesn’t have a bachelor’s degree. Other advantages include more diverse workforces, broader talent pools, and increased time to hire.

ESG Reporting Will Attract Applicants

There are increased pressures from regulatory compliance and stakeholders alike for improved environmental, social, and governance (ESG) reporting. More than 90% of S&P 500 businesses publish sustainability reports. Dedicating efforts to develop and maintain a healthy ESG reporting system is contributing to executive-level compensation, improving how existing employees perceive their employers, and attracting new hires.

Key Takeaways for HR in 2023

Consider these HR changes happening now and start re-evaluating your current position relating to internal HR operations, employee wellness, and recruiting talent. And if you need guidance in this new realm of HR, connect with ExactHire! We can help you navigate the emerging trends and affect change within your departments so you can grow with the future of HR in 2023 and beyond.