5 HR Trends For 2023

2022 has been a year of solidification for HR in a new role, and 2023 will be all about pushing the boundaries and how HR can add value to companies. Well-known expert Erik van Vulpen described some major trends in the field of personnel management that will affect our work in the new year.

Let us sum up the results of the outgoing year and in the coming days, we will consider each of the trends and prepare for 2023.

HR And Product Approach

One of the most notable trends in HR we’re seeing right now is the shift from project-driven HR to product-driven HR. By and large, this fundamentally changes the way HR builds its work. Traditionally, HR is considered to have a design mindset. The project has clear time limits, predetermined deliverables, and a set of resources required to implement the project, and is aimed at the effective implementation of this project.

The product, for its part, is constantly developing and improving. It doesn’t necessarily have an end goal but is more focused on delivering value to internal customers (our employees), with resources (additional) allocated as HR’s influence increases in the process. This shift in thinking will not only improve the quality of HR service delivery but will also allow HR to expand its frontiers of influence, which will help increase the company’s bottom line.

Work Team Design

The role of the office in the work life of employees has changed dramatically. It is no longer accepted that workers can only work effectively in the office, let alone that everyone must be in the same room. In fact, (based on research) 77% of people say their productivity increased during the pandemic. 

Nearly a third of employees were able to do more work in less time. The downside to this is that remote work has disrupted social interaction between employees and organizations become more fragmented internally. Survey results show that remote employees communicate less with colleagues when solving work tasks than those who work together in the same office (60% vs. 77%, respectively).

That is why in 2023 HR should help the company more thoughtfully and involved in organizing joint collaborations, interaction and co-creation between employees, and introducing innovations. If you want to learn more about HR trends, you should attend CHRO conferences and other HR events.

Career Development

Another key trend that touches upon the topic of employee development is career development. The traditional lifelong career development programs in place at companies like IBM, AT&T, and GE, where talent is identified, developed, and given the opportunities, they need to advance within that company, are outdated.

Workers are now less likely to devote their entire careers to one employer. According to statistics, on average, people now change jobs every four years. Workers aged 18 to 24 change jobs about 6 times during this career period.

To adjust to this reality, organizations are increasingly investing in employee career experiences. The goal is for the organization to expand its capabilities while enriching the employee’s career with new learning opportunities.

Be Prepared For Multiple Futures

The future of the labor market is ambiguous. The world has become too unpredictable to be prepared for only one possible future. Employees are increasingly demanding more flexibility about where, when, and how they work. For their part, companies themselves must learn to become more agile and resilient at the same time. 

The same goes for HR. By making data-driven decisions and using scenario planning, companies can create more agile strategies that change as the business environment changes. This will not happen unless HR itself and its own strategy become adaptive and flexible.

Using Digital HR Technologies For Good

The list of companies that misuse (unintentionally) digital technologies in managing their people or processes is growing every year. Infamous examples of Amazon’s biased hiring algorithm, or more recently Uber’s facial recognition app that discriminates against drivers of different racial groups, remind us every time that when we use any technology, we have a responsibility to use it for good.

Many of these stories contribute to the awareness of the relevance of this topic. Of all departments in a company, HR should be the ethical steward of the use of digital HR technology. And as more and more HR departments use digital technologies in the hiring process (55 percent of HR in the US already use predictive digital algorithms) or for other purposes (such as using artificial intelligence to evaluate employees), they need to be confident that AI and algorithms achieve their intended purpose rather than working against everyone.

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