Workplace challenges: qpeople’s top 5 HR trends for 2023

Over the past couple of years, we’ve witnessed a global workplace revolution as accepted doctrines have crumbled, edged out by new practices that have made a virtue out of necessity – specifically, the rapid shift to remote work, the acceleration of digital transformation, and the growing momentum to elevate purpose above profits.  That employee well-being, work/life balance, and diversity, equity and inclusion (DEI) issues have skyrocketed to the top of most HR departments’ priorities list is perhaps inevitable, given that companies continue to navigate a world in economic, cultural and political perma-crisis. But even as we head into a – hopefully more optimistic – new year, we’re still expecting to see many of these trends evolve even further as organisations focus on those issues that will help them to build resilience in the face of an uncertain future.  At qpeople, we’re predicting that businesses will continue to take a more holistic view of organisational change, that they’ll consider the ways in which leaders and managers can develop the kind of empowered, engaged and diverse workforces that are perfectly placed to optimise fresh opportunities wherever, and whenever, they arise.   The ability to embrace change will, to a large extent, be a strong indicator of success in 2023; so, are you ready for your next challenge? 

1. The normalisation of hybrid working 

Anyone who’s ever worked in an office will have felt the power of ‘presenteeism’ – the pervasive perception that employees who show up in person are inevitably more effective than their remote colleagues. (While being the last to leave the office has been a de-facto measure of productivity in some workplaces, it simply isn’t borne out by the data.)  Whatever the politics of presenteeism, the recent rapid shift to remote working appears to have had a profound impact on employees’ preferences.  Research from Gartner shows that almost half of the employees surveyed plan to continue to work remotely for at least some of the time. The desire for hybrid working is being fuelled, in the main, by Millennials and Gen-Zers, who generally place a high value on mental and physical wellness, and who, importantly, are set to make up almost 60 per cent of the workforce by 2030, according to PWC.   This trend will see HR managers examining a broader range of options to enable more flexible working – something that’s no longer a perk but a right that has recently become enshrined in UK employment legislation and applies from day one. We expect to see more companies trialling a four-day week or offering greater flexibility regarding working hours and geographical location.    Nevertheless, hybrid work comes with a plethora of HR challenges, including how to foster trust, encourage collaboration, and promote employee visibility without the familiar touchstones.  As work becomes more individualised and teams spend less time in each other’s company, managers will need to find innovative ways of promoting the kind of work bonds that create a greater sense of engagement and collegiality. With an absence of the casual interactions – including the oft-cited water-cooler moments – that office workers once took for granted, the onus will fall on managers to keep employees on side via regular check-ins and virtual meetings.    2. Recruiting and Retaining Talent  With stats from a recent Harvard Business Review showing that a third of CEOs regard talent recruitment and retention as their biggest challenge of the moment, it’s clearly a topic that will continue to resonate throughout 2023.  Savvy organisations are already tweaking their approach to make sure they land the best candidates – recruiting globally, facilitating a distributed operating model and hiring from a more diverse pool, for instance. But they’re also focusing greater efforts on retaining talent by shifting from a fixed to a growth mindset.  We’re often asked about how to spot and nurture high-potential talent (so-called HiPos). However, it’s crucial that organisations don’t rigidly segment their people into tightly defined groups that may mean they end up overlooking genuinely talented workers who fall outside specific parameters. Looking beyond someone’s experience to explore their unique blend of qualities – rather than homing in on separate traits – will enable businesses to imagine a much wider range of opportunities for personal and professional development that could contribute to company growth in other ways.  It’s inevitable that companies will also find it harder to keep hold of their top talent in the face of increased competition – especially in under-served sectors like technology. Prioritising internal career development opportunities will be key to both unlocking potential and inculcating loyalty.   This is likely to present some organisations with a further challenge: how to create and communicate clear career development pathways to employees (a task 44 per cent of employers haven’t so far cracked, according to employee feedback in a recent Gartner study). It’s a roadblock to growth that has potentially worrying consequences, especially as the same study reports that three out of four employees looking for a new role are busy exploring external progression opportunities.   We predict that focussing on strategies to promote and communicate progression opportunities will be a key trend in 2023.   3. Aligning workforce skills with organisational needs  2023 will see a continued pivot to more strategic learning in an attempt to more closely align employee skills with company culture and organisational goals. It’s an exercise that helps to make learning and development planning a data-driven task – which is all to the good – but ensuring it works to everyone’s advantage is a tricky balance to achieve.  It’s only logical to match employees with information that is directly relevant to their job; hopefully, the ‘spray-and-pray’ company-wide e-learning rollouts of old have been permanently consigned to the bin. Targeted learning is not only more engaging and helps employees feel that they – and their time – is valued. Soft skills like emotional intelligence, communication, critical thinking and problem solving are in particularly high demand.   Avoiding siloed learning sessions, where people from the same department, for example, are obliged to attend regardless of their existing skills/experience is key to effective planning. Instead, employers should focus on developing a highly personalised approach to L&D. Implementing learning within the flow of work requires a rethink of traditional L&D methodologies, so we’re predicting the proliferation of a wider range of learning options, including microlearning and micro-mentoring, as well as on-the-job performance coaching sessions.   At qpeople, we’re already witnessing these changes in practice as HR demonstrates its commitment to greater personalisation by investing in workplace learning that’s closely linked to employees’ own interests and reflects individuals’ preferred learning styles.  Building L&D programmes that are based on accurate data – including psychometric testing, individual employee assessments and performance management feedback – will not only promote personal and professional growth but will also help organisations build a resilient workforce that’s fit for an uncertain future.   4. Embedding Digital Transformation  As organisations grapple with managing a more distributed workforce, digital transformation continues to be a top priority for HR leaders. In the light of the current, highly volatile global landscape, the assumption that any business can accurately predict future skills needs, queue a resilient pipeline to supply the requisite talent or dictate where and when employees work seems tenuous at best.  In 2023, we can expect to see an acceleration of innovations in transformative technologies like artificial intelligence (AI), the internet of things (IoT) and virtual and augmented reality (VR/AR). Doubtless, empowering people with the digital tools they need to work more easily, efficiently and productively will improve the employee experience and bring organisational benefits. But we also need to consider how organisations can best embed digital transformation for company-wide benefit – a clearly defined digital HR strategy is a must.  Automation, analytics, and accessibility are among the top HR trends this year. With a robust digital HR strategy and the right tools, businesses will have a better chance of remaining competitive, attracting top talent and creating the engaging employee experiences that inspire loyalty. In addition, the cost, time and resource savings from optimising processes can generate significant ROI.  Over and above these bottom-line benefits, though, is the value of the data that will facilitate faster and more efficient business decisions. Embedding digital transformation isn’t just about cementing the adoption of digital tech into every corner of the business, it’s about using new and innovative ways of working to improve company culture, support business goals, and enable agility.   5. Redefining Leadership  As organisations adapt to new paradigms, so their leaders must flex to accommodate and optimise them. Today’s employees want managers who are authentic and empathetic, not cool and distant.  Emotionally intelligent leaders make better decisions because they take a holistic view of problem solving. They are also better equipped to adapt to business challenges and have the confidence to move beyond the traditional focus on short-term shareholder returns to prioritise the strategies that are more predictive of long-term success – including employee wellbeing, productivity and engagement.   Like their teams, leaders need support through additional L&D to increase their soft skills. The best leaders are able to inspire trust by modelling honesty, clarity, and accountability; by showing up and being responsible for their own actions, they encourage others to do the same. But they also take a human-centric approach to fostering relationships, initiating frequent in-person or virtual check-ins with staff and publicly praising employee contributions.  Developing the next generation of leaders is a major challenge for CEOs in 2023. Typically, however, leadership L&D doesn’t always prioritise the need for more ‘human’ leadership styles nor address the barriers – doubt, fear and uncertainty – that are holding leaders back. To build these skills, HR will need to invest in planning the programmes, training and mentorship experiences that will drive skill development.