The 6 HR trends for 2023 that you need to add to your HR Strategy
2023 is already shaping up to be a very different year from the one we just had. Inflation and the rising cost of living are affecting many households, and we are now told a recession is looming. On the flip side, we are still seeing people leaving businesses, as well as a widening of the skills shortage. What do all these trends mean for employers?
There is a perfect storm forming: despite financial insecurity, people are still committed to achieving their career or personal goals, and they are not afraid to quit their jobs to do it. Businesses who believe they can take their foot off the gas, as their talent pool is more likely to stick around in an uncertain climate, are sadly mistaken.
Based on these new parameters, what can HR departments do to keep, grow, and attract great people? Focus on ED&I? Facilitate the hybrid working model to allow for a better work-life balance? At Let’s Talk Talent, we believe these are no longer trends: they should already be embedded in all of your processes.
However, there are still plenty of opportunities for organisations to refine and improve their employee experience and to stand out in an overcrowded recruitment market. As we like to say, the best is yet to come, so here are the six trends you should include in your 2023 HR strategy.
2023 HR strategy trends for getting great people
Trend 1: Employer Value Proposition (EVP) as a key decision factor
Employers shouldn’t assume their business is recession-proof. At Let’s Talk Talent (LTT), we fully expect resignations to continue, which means now is not the time to ease off on your recruitment efforts. Organisations should actively be recruiting and attracting talent. To do so, you will need a strong Employee Value Proposition (EVP).
Treat your EVP as your shop window: it should tell prospects what it’s like to work for you and give them a clear idea of your purpose, mission, and internal culture. An EVP should include everything a potential candidate may need to know to find out whether or not they fit in.
One last tip: your EVP is not a marketing slogan. If it does not match the reality of working with you, it won’t work.
To find out how to create an effective EVP for your business, have a look at our paid-for EVP Toolkit, which includes consultancy time with an LTT expert.
2023 HR strategy trends for keeping great people
Trend 2: Meaningful wellbeing support
The pandemic has shown us that wellbeing is a valued commodity. So how can you support people’s wellbeing?
Have a look at what competitors are doing so you can benchmark your offer, and provide incentives such as gym memberships, cycle to work schemes, and mental health or menopausal support. Be consistent and validate that your benefits are on par with the rest of the market, of course, but also ensure your internal culture supports your people’s physical and mental health.
As you are devising your wellbeing programme, consider the seven types of rest every person needs in order to provide complete and effective support. Have a look at Dr Saundra Dalton-Smith’s TED talk on this topic, or visit our Coach on Demand services page to discuss your wellbeing initiatives.
Trend 3: Leadership and management development
It’s a well-known fact: people don’t leave organisations, they leave bad managers, and the Great Resignation has proven the validity of this claim over and over again. Employees are no longer willing to put up with bad management practices or toxic workplaces.
Team leaders have a huge impact on their workforce, and HR departments need to ensure they have a strong leadership team on their bench, or any recruitment and retention efforts could quickly become moot. Put together strong, customised progression plans for your C-suite and managerial staff that will hone their skills and improve their management style.
The hybrid reality can cover a multitude of sins, and it is easy to assume all is well with your team leaders. Don’t sit back and wait for problems to arise: invest in your leadership team’s development as you would any other employee and focus your efforts on the kind of soft skills (such as active listening and empathy) that will make the biggest impact on your internal culture.
For additional management and leadership training, register for our Management Fundamentals sprints.
Trend 4: Specialist succession plans
The ongoing skills shortage means you may not have the luxury of external recruitment to fill your vacant roles over the coming months.
It is therefore more important than ever to ‘grow your own’ and ensure you have clear succession plans in place for key roles within your organisation.
These should cover your C-suite, of course, but don’t limit your strategy to the leadership team: identify all the specialist roles that are critical to your business processes. What are you doing to entice those people to stay in the business? Should they depart, do you know who would take over?
Ensure your succession plans help high potential employees to gain the experience and the exposure they need to take on more responsibilities and to contribute towards achieving organisational goals.
Have a look at our article on specialist succession planning for more tips on how to future-proof your business.
2023 HR strategy trends for growing great people
Trend 5: A wide range of career progression options
Progression isn’t just about promotions. There is a world of possibilities when it comes to career development, including up-skilling or re-skilling your workforce, and internal mobility.
Provide plenty of options for your people to choose from, and make sure those options are visible and communicated. Focus your 2023 HR strategy on creating the join-up between on the job training, relationships and networking opportunities, and formal learning.
To support career development efforts, you will need to clearly show employees what they need to do and how they need to do it. This is where competency frameworks come in: they demonstrate what good looks like within your organisation, and what is required of your people for them to level up.
Download our whitepaper on how to create competency frameworks to supply your talent with effective career development tools.
Trend 6: Blended learning opportunities
Employees expect learning and development (L&D) as part of their rewards and benefits package. But this doesn’t mean it’s all about paying for courses and seminars.
Your L&D offering should follow the 70/20/10 ratio and provide a healthy mix of on the job training, networking, and formal resources. Ask yourself whether you are investing too much in courses. Could you set up mentoring schemes or coaching sessions to deepen expertise? Or are you neglecting exposure opportunities?
In 2023, it’s also important to get to know your audience and their preferred learning style, so you can build an L&D catalogue that answers the needs of the modern learner. Review available formats and channels, and use data to surface what works with your audience, and what doesn’t.
Download our Learning & Development whitepaper for a step-by-step guide on how to build a blended offering for the modern learner.
HR strategy trends for business success
There are plenty of trends floating about; trying to figure out which ones should make it into your HR strategy can be confusing.
At Let’s Talk Talent, we like to keep it simple. Remember, you are dealing with people, so by focusing on making sure your talent pool feels psychologically safe to be fully themselves at work, that their wellbeing is a clear priority, and that they feel like they belong and have opportunities for growth, all your bases will be covered.
What’s more, when it comes to both attracting and retaining the best talent there is, you will already have a powerful edge over your competitors.
If you’d like to start planning your 2023 HR strategy, download our free HR strategy whitepaper, visit our HR Strategy services page, or request a call with us. We’d be happy to help you plan the best HR Strategy for 2023.
