People's satisfaction with their work is increasingly low. According to Harvard Business Review, 30% of new hires leave within 90 days. Employees once endured poor conditions to please bosses, but today, they demand better treatment and won't hesitate to quit.This means that HR is losing control over employees.
In recent years, the HR departments have faced two major challenges: mass employee turnover and anti-work movements. Employees are reevaluating their self-worth and careers, seeking better working conditions and a balanced lifestyle. HR has no choice but to support this transformation, or else they will receive more resignation letters and lose more talent.
Let's now examine five of the most significant trends in this regard. Companies should closely monitor these trends, as they will continue to influence future human resources demands and the job market. Businesses must be prepared to meet employees' needs and enhance their job satisfaction in order to retain talent and seize top talent.
5 Must-Know HR Trends in 2023
The Rise of Remote Work
Working from home, also known as remote work, became much more popular during the COVID-19 pandemic. A survey by Hired showed that 77% of workers are now okay with taking a job without going to a physical office. Employees prefer work from the office sometimes and from home at other times.
During the pandemic, more people started working from home to stay safe and keep distance from others. People found that this remote work was just as good as working in offices, and they liked the flexibility and better balance between work and life.The future of work seems to be changing to a more flexible and adaptable way that suits both companies and employees.
Employee Well-Being and Mental Health
Studies conducted by McKinsey revealed that a significant 75% of employees have experienced burnout.It is a serious and prevalent issue in the workplace, often resulting from prolonged stress and overwhelming work demands. It can lead to physical, emotional, and mental exhaustion, and negatively impact an individual's overall well-being and productivity.
This worrying trend affects their productivity and job performance, leading to absenteeism and lower job satisfaction. Employee wellbeing and mental health are and will continue to be key concerns for organizations across industries.
Diversity, Equity, and Inclusion (DEI) Initiatives
According to Haiilo's research, 37% of workers consider employee recognition to be crucial, surpassing the significance of having more freedom (12%), finding inspiration (12%), or receiving a raise (7%) in terms of supporting employees' success.
This research highlights the growing importance of equality and recognition among employees. In modern HR strategies, diversity, equity, and inclusion have become central themes, reflecting the increasing emphasis on creating a supportive and inclusive work environment.
Pay transparency will become a common practice
Job seekers and employees are more willing to ask more direct questions about compensation.This past October, New York City passed a new law that companies with at least four workers that post a job will be required to include salary ranges — joining a few other states that require employers to disclose salary information.
According to Harvard Business Review, at the beginning of 2023, a fifth of all U.S. workers will be covered under pay transparency laws. This trend will only continue to grow as a culture of transparency remains a priority in the modern workforce.
Data-Driven HR and People Analytics
HR departments are increasingly leveraging data and analytics to make more informed decisions about talent management, recruitment, employee engagement, and retention. By analyzing employee data, HR professionals can identify trends, predict potential issues, and optimize HR processes for better organizational outcomes.
However, according to Gartner,6% of HR leaders say they don’t have the resources to recruit top talent. Finding and acquiring new talent is tough—especially when 50% of organizations think the competition for talent is likely to increase in the next six months.
How Can HR Deal with These Trends?
1. Hybrid Work Adaptation: Businesses can start adopting a hybrid office and remote work model. HR departments need to adjust to this new way of working to meet employees' flexible office requirements, ensuring they remain engaged, productive, and connected to the company even when working remotely.
If your industry involves mobile work, consider using Employee GPS tracking apps. These applications may offer features such as real-time location data, historical trajectories, and work hour records, making them helpful for managing and supervising employees' work activities.
2. Employee Wellbeing Support：Understand the importance of looking after employee wellbeing and mental health. HR can help employees manage stress and burnout by introducing programs such as the Employee Assistance Program (EAP), allowing flexible work schedules, and creating a work environment that supports a healthy balance between work and personal life.
3. Diversity & Inclusion Efforts：HR can do this by hiring people from diverse backgrounds, providing training to reduce bias, and cultivating that each individual's contribution is valued. These efforts are aimed at creating a workplace where all employees feel respected and appreciated, leading to greater overall success. Actively take steps to create a diverse and inclusive work environment.
4. Building Trust with Transparent Compensation：With employees clearly in the driver's seat and talent shortages unlikely to ease, companies need to promptly explain how compensation is determined. Employees' perceptions of whether they are being treated fairly can affect their trust in an employer and, in turn, their willingness to stay.
5.Use AI Sourcing: Make the most of AI sourcing tools to discover the right talents effortlessly. Consider trying AroundDeal TalentAI, a powerful tool that helps you quickly and accurately find the right candidates.
This feature is part of the AroundDeal Extension, a tool leveraging a vast database of 120 million global contact data. It helps HR in automatically analyzing job requirements, intelligently matching candidates, and obtaining their contact information with just one click.
When using AroundDeal TalentAI to filter out suitable candidates, you will have a list of potential candidates. Next, you can take advantage of AroundDeal's Engagement feature, which automatically interacts with target candidates, automates email outreach, and fosters close communication and positive relationships with the talent. Through these interactions, you can effectively seize top talent.
Key Takeaways:
- Work dissatisfaction drives high turnover and anti-work movements, pushing HR to adapt and retain talent.
- In 2023, there are five important HR trends that businesses need to know and understand how to deal with.
- Use AroundDeal TalentAI, a simple and easy-to-use recruitment aid for HR, to quickly find the most suitable candidates, obtain accurate talent data, and establish prompt contact with them.
- Use AroundDeal's Engagement feature for automated interactions and email outreach to build strong relationships with talent and attract top talent effectively.
In the face of these trends, to stay ahead, think about the future of your company. Employees are the core of the company, so seizing top talent is essential. Try installing the AroundDeal Extension to use it for free.
