The world of work is constantly evolving, and the role of human resources (HR) is no exception. As we move into 2023, HR professionals will likely encounter several new and emerging trends that will shape how they approach their work. In this article, we’ll take a closer look at some of the critical HR trends expected to emerge over the course of the year.

What is Trending in the HR World in 2023?

Increased Emphasis on Employee Wellbeing

The COVID-19 pandemic continues to impact the workplace. Studies show 94% of our workforce report feeling stress on the job. One way the tension of COVID affected HR and the work world has been in a growing recognition of the importance of employee wellbeing. A recent Surgeon General report shows 81% of employees are looking for environments that support mental health in the coming years.

HR departments will likely focus on creating a more supportive work environment that prioritizes mental health, stress reduction, and work-life balance. This emphasis may involve offering employee assistance programs, flexible work arrangements, and other benefits to support employee health and well-being.

Greater Adoption of HR Technology

Gartner says nearly 50% of HR leaders place new technology at the top of their priorities list for 2023. With HR technology’s increasing availability and affordability, we expect more companies to adopt digital HR solutions in 2023. These initiatives might include adoption of cloud-based HR systems, mobile HR apps, and virtual reality training programs. These tools can help HR departments streamline their processes, improve employee communication, and make better data-driven decisions.

Increased Focus on Diversity, Equity, and Inclusion (DEI)

There has been a growing emphasis on DEI in the workplace in recent years, and this trend is likely to continue in 2023. McKinsey expects corporate spending on DEI initiatives to top $15.4 billion in the U.S. by 2026. HR departments will be expected to take an active role in promoting these initiatives and to implement policies and practices that support these goals. DEI efforts might include diversifying the recruitment process, offering training and development opportunities for underrepresented groups, and creating a more inclusive workplace culture.

More Flexible Work Arrangements

The pandemic accelerated the shift towards more flexible work arrangements, such as remote work and flexible hours. Job seekers now say they’d take a 14% cut in pay to work remotely. McKinsey says 9 out of 10 companies will offer hybrid in-office/remote roles in the coming years. In 2023, we can expect to see more companies adopting these types of arrangements permanently. HR departments adapt to this changing landscape by developing policies and practices that support remote workers while maintaining productivity and collaboration.

Increased Emphasis on Upskilling and Reskilling

As technological change accelerates, there is a growing recognition of the importance of upskilling and reskilling employees to keep up with new technologies and industry trends. HR departments will expect to play a more active role in developing training programs and learning opportunities for employees and in creating a culture of continuous learning and development.

Greater Use of Data Analytics

With the increasing availability of data and analytics tools, HR departments will rely more heavily on data-driven decision making in 2023. These new processes might involve using data to identify trends in employee behavior, evaluate the effectiveness of HR policies and practices, and make more informed decisions about recruitment, retention, and employee development.

Increased Use of Artificial Intelligence (AI)

AI is becoming increasingly prevalent in the workplace, and HR departments are likely to adopt AI technologies to automate repetitive tasks, such as resume screening and candidate matching. AI tools can help save time and reduce bias in the recruitment process while improving the overall candidate experience. Forbes calls it a new blended workforce balancing bots and people.

Prepare Your HR Teams for Tomorrow’s Challenges

HR professionals can help to create a more agile, innovative, and resilient workforce for the future. CPS offers HR teams an effective partnership to help find the talent you need. Our expert teams have been building corporate teams for many decades, and we are already immersed in the changes we’ve outlined in this article. Talk with our team today to discover how our recruitment services can help your business.