25 Human Resource Predictions For 2023

Human Resources (HR) plays an important role in the success of any company. Employers benefit from a well-trained, engaged, and motivated workforce. Effective HR strategies and practices make this possible. Employees also benefit from HR support. After all, it helps them develop their skills and access resources for career growth and development.

But times are changing, and managers must adapt to be successful in 2023 and beyond. In this article, we’ll talk about a few key areas they may need to change. We will also tackle 25 HR predictions for 2023.

Key Areas That HR Managers Must Address

1. Remote Work And Virtual Collaboration

HR managers must be proficient in tools and strategies to head and support remote work. That includes virtual modes for contact and teamwork.

2. Employee Well-Being

HR managers must prioritize employee well-being. They must also develop strategies to support mental health and work-life balance. Learn more in our piece, “How Does Worker Well-Being Impact Employee Performance?”

3. Diversity, Equity, And Inclusion

HR managers must learn and understand diversity, equity, and inclusion. That way, they can address related issues that may arise in the workplace.

4. Upskilling And Re-Skilling

HR managers will need to stay up-to-date on the changing nature of work. They also need to help employees upskill and re-skill as needed.

5. New Technologies

HR managers will need to be familiar with new tech. They must also learn how to use them best to improve HR practices. Some examples are:

Artificial intelligence
Virtual and augmented reality
Wearable technology

6. Data-Driven Decision-Making

HR managers must be proficient in gathering and assessing data to inform strategies and decisions.

Overall, HR managers must be adaptable, proactive, and strategic. That way, they can stay ahead of the changing needs and demands of the workforce.

25 HR Predictions For 2023

Now, let’s view 25 HR predictions for 2023:

There will be a greater emphasis on employee well-being. This aspect includes mental health support and work-life balance. Julie Lock, the Commercial Director at Advanced People Management, states:

“If you create a work environment that caters [to] the physical and mental well-being of your employees, it becomes a great place to be.”

Companies will place a greater focus on diversity, equity, and inclusion in the workplace. Chanda Hand shares a quote from Ken Charles, VP of General Mills:

“If employees cannot bring their full selves to work. And if employees live in fear of being treated differently simply based on who they are. It comes at a cost to the company.”

The use of virtual and augmented reality for training and development will be more widespread.

The gig economy will continue to grow. It will need new strategies to manage and support independent contractors and freelancers.

HR departments will play a larger role when it comes to remote work. They will be more involved in this model and helping employees collaborate online. Willy Lim, Vice President for Talen Acquisition at Sitel Group, shares his thoughts:

“The future of work is all about flexibility and being able to perform your task anywhere, that is supported by solid infrastructure.”

There will be a greater emphasis on helping employees upskill and re-skill. This will prepare them for the changing nature of work.

Predictive analytics will be used more often for forecasting. The same goes for HR decision-making.

Using chatbots and other AI will increase HR tasks. Some examples are onboarding and benefits management.

Using biometrics data will become more common for security and efficiency purposes. Take facial recognition and fingerprints, for example.

Gamification and interactive learning methods can boost training and development.

Companies will adopt more flexible and agile work models. Think of scrum and other methods. As summarized by Shabir Hussian, Service at NEXA JAMKASH:

“The days when people used to place themselves inside the compartments are gone now.”

There will be a greater focus on becoming sustainable in HR policies and practices. The same goes for being responsible for the environment.

Virtual reality and simulations will be used more for training and assessment.

Automation and machine learning will be more used in HR processes. Take recruitment and performance management, for a few samples. We talk about it more in our piece, “Why human resource development software is so important.”

Wearable tech will be more used for tracking and engaging employees. Take smartwatches and fitness trackers, for example.

HR managers will play a larger role in heading work-life integration. They will also address the needs of a workforce that spans multiple generations. Check out our article, “Workplace Flexibility and Work-Life Balance” to learn more.

Video conferences and other virtual tools will be more widespread. This will lead to fewer business travels and on-site meetings.

HR managers will be more proactive and preventive to engage and retain employees.

Companies will implement more flexible benefits and leave policies. These things will support employee well-being.

Blockchain tech will boost tasks like verifying employment and managing benefits.

HR managers will play a larger role in shaping company culture and values.

Virtual assistants and chatbots will boost employee support and connection. Career coach Matt Warzel shares:

“Remember, work-from-anywhere is a gift. You can discover new hobbies, and lead a more well-rounded life. But maintaining that engagement with others is undoubtedly harder now.”

HR departments will be more data-driven when it comes to decision-making and strategy.

AI will boost tasks, like acquiring talent and assessing performance.

HR practices will be more personalized and customized when it comes to benefits and chances for growth.

To Wrap Up

The HR industry is under rapid shift. That’s why HR managers must stay abreast of new tech and trends. They must adapt and stay proactive and strategic to manage the evolving workforce.

To add to the 25 predictions listed here, many more will likely shape the future of HR in the next years. It’s up to managers to stay open and ensure their company is ready for future challenges and chances. With the right approach, they can stay competitive in a rapidly changing sphere.