HR Horizons: Navigating 8 New Trends and Strategies in 2023

February 20, 2024
Natalie Thorburn

HR roles continue to hold significant importance in businesses as the workforce evolves. The dynamic nature of the environment necessitates keeping up with trending HR topics as an integral part of the job description. Changing employee expectations will require HR teams to adapt and remain competitive in the market. With all this, the best HR trends have been going on for several years in a row, we will not deal with what everyone already knows. We will focus on new, current, and most important trends and strategies in the HR field.

New HR Trends and Strategies

 #1 Diversity, Equity, and Inclusion

During times of economic uncertainty, many leaders are inclined to reduce investments. However, investments in DEI should not be included in those cutbacks. Consistently addressing bias, implementing equity-focused policies, and fostering a more inclusive workplace demand ongoing attention and investment. This commitment will be tested in 2023-2024, as organizations navigate the day-to-day work of promoting inclusivity, equity, and diversity.

During a recession, organizations' priorities become evident as they decide which line item(s) on the balance sheet to trim. While some companies may contemplate tighter budgets, certain programs and initiatives, such as employee resource groups (ERGs), which offer valuable platforms for like-minded individuals to connect and transform ideas into impactful actions, may be temporarily sidelined.

 #2 AI and Automation

AI and automation play a crucial role in people analytics and employee experience endeavors. For example, they can detect employee dissatisfaction and potential resignation, offering recommendations to address the issue promptly.

The increase in tools comes with some challenges for HR. To avoid experiencing slowdowns in your smartphone, you can use a phone cleaning app, just click over here.

 #3 Skills-Based Hiring

Remote's recent research reveals a 63% increase in skills-based hiring over the past year. This shift reflects a rising preference for experience over academic qualifications among employers. By adopting skills-based hiring, employers not only expand their talent pool but also remove career and salary barriers for two-thirds of adults in the United States without a bachelor's degree. Moreover, this trend gains momentum as various professions, including computer support and software engineering, no longer require a degree for job performance. According to the report, the percentage of job listings requiring a college degree decreased from 51% in 2017 to 44% in 2021.

 #4 Hybrid Learning

According to research conducted by Executive Networks, involving 515 global heads of learning and development, nearly six out of ten learning leaders believe that the growth of hybrid working and learning will lead to a reinvention of the traditional brick-and-mortar corporate academy.

Initially, there was an expectation that online and hybrid learning would be a temporary solution. However, now companies are questioning the role and purpose of a brick-and-mortar corporate academy. The concept of a pop-up campus should be flexible and can range from using streaming technology in multiple locations to creating a live studio experience.

These experiments suggest a future where corporate academies will be omni-channel, allowing learners to engage wherever they are - whether it's in person at a corporate headquarters, in a satellite office, in a pop-up space, or online.

 #5 Build Out an HR Crisis Plan

If there's one thing we've learned from an unprecedented pandemic, it's the importance of being prepared. While it may be difficult to predict the next potential crisis, consider following the lead of PR specialists and developing an HR crisis plan for your organization.

 #6 New Blended Workforce

The concept of a blended workforce has evolved due to increased automation. According to research conducted by Executive Networks, the composition of the workforce is changing. It includes reduced reliance on full-time employees and a rise in part-time and gig workers. A survey of CHROs forecasts a significant increase in the use of digital automation assistance (bots) by 2025.

HR automation offers benefits like faster hiring and improved employee experience through self-service solutions. As we envision the future blended workforce, regular audits of AI tools are crucial to ensure unbiased algorithms. Some states, like New York, have already passed statutes requiring audits for bias in AI and algorithm-based technologies used for recruiting, hiring, or promotion. Transparency and explainability of AI are fundamental in this evolving blended workforce.

 #7 Evolutionary purpose, ESG and Net Zero

This key new trend may not be new in some organizations, but it is undoubtedly the most important. To have any hope, both individuals and organizations must adopt a broader and long-term perspective on business operations.

We have witnessed purpose statements shifting from solely beating competition and maximizing shareholder returns to making a meaningful impact. However, these statements should further evolve to demonstrate how companies contribute to developing society and improving the environment. Subsequently, businesses must align their actions with their purposes.

 Conclusion

Challenging business conditions are on the horizon due to a tight labor market, inflation, and the possibility of a recession. In response, HR can optimize the existing talent pool by implementing strategies that leverage internal resources, engage employees, and provide support to boost productivity. Ultimately, the key lies in enhancing the employee experience. Engaged employees exhibit higher productivity, reduced stress levels, and decreased turnover rates.

 

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