Discover essential HR Trends for 2023 to stay relevant and updated with evolving employee expectations. From WMS and space optimisation to employee wellbeing advice.

10 HR Trends for 2023

HR Trends for 2023 are essential for Human Resources Managers seeking to stay relevant and updated with evolving employee expectations. Work has evolved tremendously in recent years. As industries face financial and logistical challenges, businesses rely significantly on their personnel to stay competitive. Attracting and retaining expertise and experience is essential to making 2023 a successful year. 

1. Reduce burnout through wellbeing

Employee Burnout

One of the biggest HR trends of 2023 will be finding solutions to tackle burnout. Gallup highlights how 76% of employees experience burnout at least sometimes. This isn’t just cause for concern for the burnt out employee in question. It may be felt individually, but its negative consequences permeate the wider organisation. This is a priority for Managers in Human Resources who need to find solutions to employee dissatisfaction and thus improve productivity. At the very least, employers will need to reduce burnout if they want to stay competitive and energised. 

Employee wellbeing will be prioritised more throughout 2023 since it is one of the elements that candidates consider while seeking meaningful employment. As a result, job listings have increasingly focused on demonstrating HR initiatives that elevate wellbeing, health and happiness. 

2. Win the War for talent 

HR Trend Winning war for talent

If you are seeking a new strategy for Human Resources in 2023, you will want to reduce burnout from the beginning. This starts with having a happy, motivated team for new starts to integrate with. Recruiting excellent talent means being able to offer more than just adequate compensation. As HR Magazine reports nearly half of Generation Z employees (ages 18-24) said they would switch jobs for a better employee experience, even if it meant taking a pay cut. Young workers often bring energy, vital new viewpoints and updated perspective to the core of your business. Winning the war for talent takes a multi-faceted approach to employees and the workplace. Think what you would want when joining a new company and research competitors to see what they have to offer. Combine this with a modern workspace and flexibility, and you will already be on the right track. 

 3. Promote from within to retain

HR Trend Employee Promotion

Promotions should not be overlooked as a top HR trend for 2023. The reminder from Matt Wallaert still rings true that if a team runs itself for six months while you hire a manager, you shouldn’t be hiring, you should be promoting. Promoting from within is very much the flip side to the War for Talent. Many HR managers are choosing to promote the talent they aim to retain. Internal promotion can save time and money, as the external hiring process can be costly and time-consuming. Employees can build on their existing company and industry experience, while gaining much needed motivation from increased responsibility. 

4. Facilitate flexible and hybrid working

Workero Flexible Workspace

According to a Beezy survey of 800 employees at big firms, 73% will work in a hybrid or entirely remote situation in 2022. 32% indicated they wish to be completely remote. What this means for HR is keeping up with changing trends in the job market. From industry to industry, we see companies still using their pre-pandemic practices without a software to back up these important changes. Ultimately, companies that do not provide hybrid work options will have a more difficult time attracting and keeping personnel. 

If your company hasn’t already implemented structured hybrid or flexible working, now is the time to do so. Otherwise, you will be outpaced by competitors. Our workplace technology offers not just a simple way to safely return to the office, but a continually evolving integrated software solution to workplace and employee management. This is especially helpful for governmental agencies still seeking a viable and safe return to the office.

Learn more about the technology behind our flexible workplace solution

5. Expand your flexible working offer

Expand Flexible Workspace

This one is an essential HR trend for 2023. Flexible working can involve more than just a few days working from home. We previously discussed 3 companies successfully expanding their flexible work arrangements. Spotify and Airbnb featured prominently due to their offer of extreme flexibility, with employees being allowed to work from anywhere in the world. This gives both a human resources advantage, making them extremely competitive during the hiring process.

A better alternative for startups, scale-ups and less tech orientated corporations is choice. Joining an office space network gives your employees and potential candidates unrivalled choice and flexibility. Not only will employees be more satisfied with increased agency, but your operations become more sustainable and productive with less commuting and more inspiration. 

6. Improve your workplace technology 

HR trend quote

Another HR Trend for 2023 is expanding and improving your current technology. Hybrid work presents a number of HR problems, including developing and sustaining trust, collaboration, and employee visibility within the business. Pre-pandemic departments have lost their contact with each other and employees have become islands. Giving your employees better systems and software that makes their job and collaboration with team members easier is urgent and necessary.

To prepare for this, we have continually been updating and improving our Workspace Management Software to include faster desk bookings, seamless visitor management and a centralised software for HR. We have recognised the need for a one-stop solution to visitor, employee and building management. Co2 monitors for your space. 

Get in touch with our Workplace Experts to start transforming your workspace for optimised efficiency and effectiveness. 

7. Enact a human centric HR culture 

HR Stats The Pharmacy Guild of Australia

A growing HR trend for 2023 is human centric internal policy. Since the pandemic, business leaders have increasingly adopted a performance culture to work. In addition to this, KPIs have shifted to results based as opposed to time based. Initiating a performance culture brings various advantages, from improved employee satisfaction to increased productivity. McKinsey expands on this, highlighting how “In times of volatility, organisations that focus on culture and organizational health accelerate out of crisis faster”. With 98% of employees being proud to work for the Pharmacy Guild of Australia, we spoke to their People, Culture and Operations Director Rochelle Burge for some insights. Pioneering a respectful flexibility policy, Rochelle is keenly aware of the need to humanise work culture. 

“We’ve seen so many improvements through our flexibility approach – more so related to trusting our staff and treating them with respect.  By putting the onus on the individual to set up their own arrangement and seek input from their team/manager – it tells them that we trust their judgement!” – Rochelle Burge

8. Space optimisation for improved tenant experience

HR Trend Tenant Experience

As highlighted by Indeed “it is essential to redesign workspaces to accommodate hybrid arrangements”. Expanding on our previous point of human centric HR policy, you should start to consider how space impacts this. A growing trend at the end of 2022 was the self-care aspect to spaces. Your offer as an HR manager as part of your HR strategy should be to provide optimised spaces for employee wellbeing. 

A simple way to get started is by defining what space you have. Our heatmap and floor plan technology allows for overviews and insights into your space usage with real square metre reporting. Identifying cold spots across your workplace provides opportunities for monetisation of empty space. Start adding value by repurposing space for tenant experience and productivity. 

9. Upskilling for internal progress

Upskill HR Trend

Upskilling is not a new HR trend for 2023, but an increasingly important one. Evolving technology requires adequate training. Using resources to keep your workforce updated should be a consideration for all organisations. Millennials specifically are seeking employers who invest in their career. So to retain the best and brightest within your organisation, upskilling can be a productive strategy. Moreover, the cost of hiring more experience staff is more expensive. In a study by Westmonroe, it’s demonstrated how upskilling existing employees costs one-third the price of recruiting. 

10. Improve mental health provisions 

Mental Health Matters HR Quote

The final HR trend of 2023 is the growing importance of workplace mental health. Many of the causes for this were evident before Covid-19, but emphasised throughout the pandemic. Large workloads meaning long hours and increased pressure have left employees overwhelmed and overworked. As of 2019, the World Health Organization (WHO) reported that 15% of working-age adults have a mental condition. To tackle this, HR departments are seeking new and creative ways to alleviate stress for workers. Everything from Meditation and Yoga sessions to self-care workshops and expansion of mental health resources have become standard in growing companies. Spectrum.Life is one such example of the growing tools available on demand to employees. As an HR Manager, developing long term strategies for employee wellbeing are as much about mental health as they are about retention, productivity and a caring company culture. 

For more ways to elevate your HR strategy across 2023, get in touch with our workplace specialists to see how Workero can transform your operations.