Human resources leaders faced many challenges in 2022. Layoffs, quiet quitting, skills gaps, the war for talent, moonlighting, constantly evolving hybrid office policies, and more. It’s an understatement to say human resources and people & culture teams had a lot on their plate over the last 12 months.
Many of last year’s trends will continue through 2023, though I’m sure many of you reading this were hoping they could leave a few items from that list behind. The reality is that the new year will present a new set of challenges to be solved, especially as news of economic uncertainty and a potential recession looms. Anyone who visits Linkedin or Twitter regularly can see that we have already begun to see some of the impacts of that market retraction in the enterprise tech space.
However unlike previous recessions, the Canadian labour supply continues to tighten. Year over year, the unemployment rate dropped from 5.9% to 5.1% in December 2022, all while new jobs continue to be added to the economy.
Early labour market indicators point to an even more competitive hunt for in-demand skill sets, which means organizations will need to prioritize attention and resources towards talent retention and internal development to stay efficient.
While not a new phenomenon, social media has further amplified the importance of brand reputation management as employees (both those who are newly exited and those remaining) share their layoff experience. Organizations may be able to move on after a poorly handled group exit, but new potential hires will not be as forgiving. It should be common sense, but informing your employees of a layoff by unexpectedly turning off their email and building access will increase your future talent acquisition costs.
To help other people leaders who are trying to keep up with this constantly evolving space, I’ve compiled a list of the most commonly anticipated concerns/priorities/challenges I’ve been hearing in all my conversations with HR leaders so far this year:
.png)
Employees look to their managers for guidance, support, and growth but when managers don’t have the tools to actively provide this support and leadership, it creates a disengaged and dissatisfied workforce. Based on a Gallup survey, managers account for at least 70% of the variance in employee engagement.
Given that only 10% of employees are natural leaders, managers without support and training are operating on instinct and are bound to get burnt out.
Career management programs can provide the structure and support your employees need to become strong authentic leaders. Career management is designed to prepare leaders to lead with compassion, have difficult conversations when necessary and develop better relationships with employees, ultimately leading to better business outcomes for the organization.
In anticipation of the recession, organizations face the need to downsize their workforce and restructure the organization, causing additional stress for employees. As a result, HR leaders will have to make difficult decisions, and need to approach organizational changes in ways that are transparent, fair, and human-centric, always keeping in mind the needs and well-being of affected employees.
In the case of departing employees, support programs may include offering severance packages, outplacement support, and support for mental health and well-being. I’ve previously blogged about the benefits of providing outplacement both as a talent retention strategy and as an employee morale/performance boost for remaining staff.
Beyond that, I’ve also appeared in a recorded webinar where we specifically address the impacts of the growing power of employee voices via social media. The benefits of transparent change management practices far outweigh the costs of poorly handled transitions on talent, productivity and brand perception.
Organizations that successfully mitigate these risks rely on carefully planned career transition plans that lead to smooth transitions for employees and minimize the effects on the business.
In 2023, organizations will have to compete for talent with more than just salaries alone.
Today’s workers are prioritizing career growth and development opportunities above all else, and aren’t afraid to change employers to get ahead in their careers. HR leaders can attract, engage and develop talent by showcasing how they support the ongoing growth of employees on their career path.
HR leaders will play a key role in helping employees identify their goals, develop career paths and grow the skills needed to progress. This entails offering training and development opportunities, coaching and mentorship programs, and other support to help employees advance in their careers, while adding new competencies to your organization.
By investing in employee development, career management and career pathing, HR leaders can help their workforce stay engaged and motivated, while aligning organizational skills with business needs.
Recruiting is changing. According to PwC’s 23rd annual global CEO survey, 74% of CEOs are concerned about the availability of key skills.
In this uncertain economic environment, HR leaders are concentrating on identifying the skills that are most in demand and finding candidates who possess those skills, rather than trying to fit candidates into specific job titles.
Especially in a tightening labour market, having a strong hiring strategy can give your organization a competitive edge.
This requires a shift in the way HR leaders think about recruitment and may involve reevaluating traditional job descriptions, in favor of employees that directly contribute to an organization’s bottom line.
By focusing on skills rather than roles, HR leaders can build a more agile and adaptable workforce that is better equipped to meet the changing needs of the organization and attract just the right talent.
Work has evolved.
With the rise of remote work, today’s workforce expects employers to provide the same level of career support, and more flexibility. HR leaders can help employees thrive in the future of work by investing in processes that continually grow employee skills, enhance work-life balance, mental health and well-being, and can be executed remotely.
This may include offering virtual learning and development programs, mental health resources and one-on-one counseling, and creating a culture of openness and support for employees who may be struggling.
By addressing the learning and career growth needs of their workforce, HR leaders can help to create a more positive and productive work environment for all employees to thrive, now and in the future.
Conclusion
In 2023, HR leaders will have to navigate challenges such as rising inflation, labour shortages, and shifting workplace values in order to ensure sustainable growth for their organizations.
These trends also align with the top five strategic initiatives HR leaders are prioritizing in the new year. According to a recent survey by Gartner of 800 CHRO’s, HR leaders continue to face an unprecedented amount of disruption and a large number are prioritizing initiatives that are empowering their workforce to grow within the organization.
Organizations will have to focus on identifying in-demand skills, managing a hybrid workforce, offering career development opportunities, using workforce analytics, and adopting a more employee-centric model that involves listening to and supporting employees. These trends are expected to continue influencing the workplace in the coming year, relying on new technologies and partners to inform the strategic direction of the organization.
How can Thrive help?
Thrive offers an all-in-one digital solution to support people in advancing their career. With one integrated platform, organizations can support employees across various areas throughout their employee life-cycle including career transition, management, and redeployment. The self-directed platform empowers your employees to identify skills in demand, develop critical competencies through upskilling, get one-on-one support from career coaches and gain an edge in a competitive employment market by utilizing our proprietary job search tools.
If you are looking for a new way to offer affordable, and tailored career support to your workforce, we invite you to book a free demo to learn more about how Thrive can help your organization.
Learn more about the career wellness platform, solutions for your organization, and let us show you why our net promoter score is 73.
(the industry average is 28)
