Are you interested in diving into the 9 most prominent human resources (HR) trends for 2023 to see what practices and techniques companies often use to understand and meet employee needs, add value to the business and align specific functions with commercial demands? Let’s have a closer look!

 Lome Koekemoer

Lome Koekemoer

Head of People Development

9 Prominent HR Trends for 2023

Part 2

HR Trend 6

HR TREND 6:

RESKILLING, UPSKILLING & INTERNAL MOBILITY

Hiring freezes have become a post-pandemic reality. Consequently, most companies have doubled down on internal mobility strategies, and the upskilling of their existing workforce. With skills shortages increasing over the next few years, organisations that want to maintain a competitive advantage will have to invest heavily in the upskilling of their workforce to ensure modernisation and innovation acceleration.

According to the World Economic Forum, 50% of the world’s workforce will require reskilling or upskilling within the next 5 years. Furthermore, most of the required upskilling cannot take place in formal learning (i.e. academic training, certifications, training sessions, etc.). It is anticipated that there will be an increase in social learning and more specifically on-the-job learning through gig projects, stretch assignments, job rotations, action-learning, etc.

2023 is likely to be the year in which HR, and specifically L&D, will reinvent learning strategies to bring learning into day-to-day work. HR teams will need to walk much closer to business to understand the upskilling needs, on-the-job learning opportunities, and preferences of learners and design learning interventions accordingly. Consequently, we are likely to see continued investment in employee learning throughout 2023.

HR Trend 1
  • Invest in talent marketplace technology that supports the matching of employee aspirations and development with the skills needs and learning opportunities of the business.
  • Double down on career mobility and development interventions for all employees, with a major focus on cross-skilling and upskilling on future skills.
  • Prioritise regular career and development conversations between line managers and employees to drive mobility and upskilling interventions.
  • Offer multiple learning opportunities for all, ranging from stretch or gig assignments to peer coaching, mentoring, knowledge sharing, self-driven online learning, and job rotation opportunities, to name but a few.

HR TREND 7:

AUGMENTED RECRUITMENT

HR Trend 7

This is a top priority for 46% of HR Leaders, and 36% say their sourcing strategies are insufficient for finding the skills needed for the business to succeed, according to a Gartner report. Furthermore, 50% of organisations still expect the competition for talent to increase in 2023, resulting in surmounting pressure for recruitment divisions in the business. Recruitment leaders will need to accelerate and reprioritise recruitment strategies and methods to better align with (fast-changing) business needs and make quicker decisions using AI technology, automated recruitment systems, and streamlined recruitment processes. 

We are also likely to see an increased focus on the candidate experience throughout the entire talent acquisition cycle, from attraction to sourcing and selection, as candidates become more savvy and discerning about the companies they want to work for, based on their experience throughout the recruitment process.

HR Trend
  • Invest in AI-enabled sourcing technologies.
  • Re-evaluate the employee brand and increase brand engagement with potential employees across various social media and career engagement platforms.
  • Introduce recruitment initiatives that will streamline the candidate experience. Think gamification, AI-enabled screening, and immersive experiences for candidates.
  • Learn from marketing, and develop and promote a strong brand that highlights development opportunities, culture, company ethics, and other key aspects of the EVP.
  • Invest in systems and technologies (like Applicant Tracking Systems) to automate tedious, time-consuming tasks, so recruiters can spend their time focusing on more meaningful elements such as employer branding, attraction initiatives, and building networks.
  • Continuously review the recruitment process to ensure bias-free decisions are made. Using AI-enabled assessment techniques will be especially useful to reduce bias in hiring decisions.
HR Trend 8

HR TRENDS 8:

PEOPLE ANALYTICS, HR TECHNOLOGY & AI

As HR seeks to add more value in 2023, the use of AI in the HR function will grow to include recruiting, identifying skills gaps in the workforce, analysing employee engagement data, and helping employees to navigate career development. According to the International Data Corporation (IDC), 60% of Global 2000 companies will use AI across the entire employee lifecycle by 2023, with AI technology supporting every employee stage from recruitment to retirement. The pace of roll-out, outside of the top two thousand companies is unclear, but AI enablement within the HR function is certainly gaining traction and with good reason.

According to DDI, organisations that excel at people analytics are 3.1 times more likely to outperform their peers. And research by Gartner reported significant improvements across various HR functions – 62% in data-based decision-making, 57% in the employee experience, 56% in task automation, and 51% in cost savings for AI early adopters.

According to Gartner, the key areas where organisations plan to implement AI in the coming years are workforce planning (52%), learning and development (51%), skills management (48%), and performance management (44%).

HR Trend
  • Take ownership of algorithmic management – ensuring an efficient, fair, and transparent process.
  • Pay greater attention to privacy and IT security challenges with the implementation of AI and people analytics initiatives.
  • Investigate ways to use AI to accelerate and strengthen people decision-making. This can be done through AI enhancement in recruitment, succession, career management, skills planning, workforce planning and so much more.
  • Use analytics to understand productivity amongst hybrid and in-office workers to address productivity challenges potentially accompanying remote working.
  • Investigate ways to use analytics and AI to understand the well-being and engagement of employees at any given time and how to enhance it on a more personalised basis.

HR TRENDS 9:

UPSKILLING HR

HR Trend 9

The preceding 8 HR trends listed above, emphasise the need for HR to evolve. Research from BCG  has found that HR is one of the most highly disrupted industries in terms of skills. To capitalise on the opportunities that are offered to the function, HR will need to accelerate the development of key skills for all HR employees in 2023. 

According to AIHR the following HR skills will be important in 2023:

  • Change management
  • Risk management
  • People analytics
  • Stakeholder engagement
  • Management of strategic deals and alliances
  • Integrating cultural differences
  • Ethics and data privacy
  • Critical and system thinking
  • Negotiation skills
  • Inter-departmental collaboration
  • Resilience
  • Project management
  • Organizational design

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