The human resource management industry has reshaped how we work in recent years — from a

more efficient hybrid work model to the metaverse. New and developing HR trends will enhance
this transformation, adding value to the industry.
In this article, we’ll provide valuable insights into what lies ahead and how these trends can
impact your work, workers and workplace. Get ready to stay ahead of the game.

Key Takeaways
74% of U.S. companies are using or planning to implement a permanent hybrid work model.
The new age workplace requires empathetic, adaptive and authentic leaders for their employees.
Giants like Meta, Apple, Google and Microsoft are investing in the metaverse workplace.
There’s a 22% gap between employer and employee perceptions of well-being at work and a
strong correlation between toxic work cultures and burnout.
Employee resource groups (ERGs) provide a safe place for women, veterans, LGBT employees,
people of color, people with disabilities, working parents and others.
Trends We’ll Look At

Setting the Hybrid Work Model for Collaboration

“Human” Leadership
Working in the Metaverse
Change Management
People Analytics
The Transition From Employee Well-Being To Healthy Organization
DEI in the Spotlight
Generative AI To Enhance HR Processes
But is knowing trends enough? This article will also offer an expert’s advice on strategizing HR
at your workplace in anticipation of the future of human resources. After all, isn’t success the
result of preparation?

Top 8 HR Trends for 2023

Understanding the annual shifts is crucial for any industry to keep up with the rapid
developments. To that end, we’ve consulted industry leaders and experts to learn the top HR
trends so you can make informed decisions for your organization.

According to Dave Millner, Founder and Consulting Partner at HR Curator, “This is an exciting
time to be in HR, and if challenge, innovation, change and personal growth are of interest to you,
then stick around.”
1. Setting the Hybrid Work Model for Collaboration
With things back on track post-pandemic, the workplace is evolving into a more suitable
approach for employees and their productivity — the hybrid work model. It’s an employee-
centric flexible work model with a mix of in-office and remote work.
Per a recent report, 74% of U.S. companies are using or planning to implement a permanent
hybrid work model. With more and more companies opting for this approach, it’s clear the
hybrid work model will be a key element in the future of human resources.

2. “Human” Leadership
A recent HBR article about the distinction between managers and leaders quotes, “CEOs need to
manage, not just lead. Middle ‘managers’ need the skills of leadership, too.”

Now more than ever, following the shifts the workplace has seen, the importance of an effective
leader and manager has grown by leaps and bounds. The current scenario demands empathetic,
adaptive and authentic leaders for their employees.
Improve company communications
Prioritize teamwork and collaboration
Invest in people
Encourage feedback
Give recognition, rewards and compliments
Besides company initiatives, leadership expert Kerry Azar suggests looking inward:

“While our world is becoming increasingly complex and unpredictable, it’s also providing us
with countless opportunities to reflect on what leadership means and to actively develop the
mindset, skills and tools that support outstanding leadership.
“If leadership is about becoming ‘radically human,’ then there’s one thing we can do daily. Ask
ourselves, ‘How am I getting in my own way?’ Answer truthfully and be prepared to act.”
Working in the Metaverse
With technological advances, the metaverse workplace is on a quick path to becoming an
everyday reality. But how does that work? The metaverse workplace offers virtual reality
environments that let you work in a customized immersive space from anywhere in the world.

The HBR article How the Metaverse Could Change Work says:

“Imagine a world where you could have a beachside conversation with your colleagues, take
meeting notes while floating around a space station, or teleport from your office in London to
New York, all without taking a step outside your front door.”
Within the metaverse, we create digital workstations so employees can work independently. It
also allows interactions and real-life experiences via digital avatars.

So, which companies have jumped the metaverse bandwagon? A recent CNBC report lists Meta,
Apple, Google and Microsoft as investing in the internet’s next big frontier.

3. Change Management
What have the past few years taught us about dealing with unforeseen circumstances at the
workplace? The answer is change management.

Change management systematically deals with changes in an organization’s goals, processes or

technologies. It aims to implement efficient strategies to execute changes, control them and help
people adapt to them with minimal hindrances.

So, while you’re strategizing for change management in your organization, here are some factors
to consider:

Digital adoption platforms to implement change

Managers and early adopters as change agents
Change as a part of company culture
Data-driven approach to change management
Humanized change
Get representatives from across your organization involved at every stage of a change process—
from identifying challenges and planning improvements to implementation and reflection.

“When the people in your organization are involved in identifying challenges and recommending
improvements, they’ll understand the reasoning behind changed processes and new initiatives.
They’ll be invested in improvement.

“Putting hard data behind organizational decisions is smart, but implementing change requires
more. It also requires employees inspired by what the change will mean for their day-to-day
work and the organization’s ability to fulfill its mission.

“You need both the technical skills to manage projects, make a plan and oversee deliverables;
and the emotional skills to communicate a vision, inspire action and empathize with concerns.”
People Analytics
According to a Deloitte report, over 70% of companies use people analytics to improve their
performance.

A Forbes article describes people analytics as:

“A data collection concerning human capital and workers’ performance within an organization.
But this practice also turns information into actionable and meaningful insights that HR and PA
specialists use to enhance business performance and employee experience.”

A report titled Impacting Business Value: Leading Companies in People Analytics highlights the
following key areas in which people analytics can add value:

Diversity and Inclusion: For actionable insights on employee sentiment and to test improvements
in employee experience, psychological safety, belonging and fairness.
Employee Experience: For data-driven employee experience/listening to get a better “feel” of the
organization.
Retention: For information about the labor market, key competitor trends, risk factors with
predictive models and more.
Workforce Planning: To predict and plan for skills and workforce costs while managing existing
costs.
Talent Acquisition: For evaluating fairness in assessment and selection and the right hiring pace
for the market demands of the business.
6. The Transition From Employee Well-being To Healthy Organization
The past couple of years finally witnessed employee mental health and well-being getting their
due focus at the workplace.

A recent study by the McKinsey Health Institute found that one in four employees globally
report experiencing symptoms of burnout. Moreover, the study highlighted a 22% gap between
employer and employee perceptions of well-being at work and identified a strong correlation
between toxic work cultures and burnout.

What can we expect to unfold on that front?

The answer lies in “The Healthy Organization” — a holistic and more inclusive enterprise-wide
approach to well-being. This concept goes beyond the physical health and safety of the
employees. It aims at providing more flexibility and opportunities for their training and
empowerment. The Healthy Organization framework includes the following elements:
7. DEI in the Spotlight
Diversity, equity and inclusion are buzzwords in most organizations and rightfully so. DEI
initiatives are a part of addressing bias, discrimination, harassment, unfair wages and other issues
in the workplace.

The need for DEI has also increased with the evolving work models — from in-person to virtual
and hybrid environments.
According to a Trailant report, 79% of respondent companies planned on increasing their DEI
budget in 2022. But money isn’t enough to eradicate deep-rooted problems. The report also
mentioned only 13% of senior executives proactively support DEI initiatives. Going forward,
this highlights the need for developing more DEI leaders to positively change workplace
behavior and culture.
According to a recent Forbes article, companies can use the following metrics to improve DEI:

Recruitment metrics
Hiring metrics
Onboarding metrics
Day-to-day activity metrics
Compensation, advancement and retention metrics
Employee Resource Groups (ERGs) are another means for companies to focus on DEI.
According to one report, these networks “provide a place for women, veterans, LGBT
employees, people of color, people with disabilities, working parents and others to connect and
help ensure that the workplace welcomes and supports their productivity.”

8. Generative AI To Enhance HR Processes

Generative AI has emerged as a transformative technology with significant potential in various
domains, and the field of HR is no exception.

HR vendors are actively developing and deploying generative AI to streamline and enhance
different aspects of talent acquisition, employee engagement and workforce management.

For instance, generative AI algorithms can help create job descriptions and postings by analyzing
vast datasets to determine the most effective wording to use.

According to a recent McKinsey report:

Right now, if you’re an organization with tens of thousands of applicants, you may or may not
have super customized ways of reaching out to the people who have applied. With generative AI,
you can include much more personalization about the candidate, the job, and what other jobs
may be available if there’s a reason the applicant isn’t a fit. All those things are made immensely
easier and faster through generative AI.”
Companies are also harnessing generative AI to develop interactive chatbots or virtual assistants
to handle routine HR inquiries and provide prompt responses, freeing up HR professionals to
focus on more strategic tasks.

With all the hype, it’s no surprise that the generative AI in HR market is expected to be worth
around $1,669.3 million by 2032.

However, despite the roaring popularity, generative AI, just like any other technology, isn’t a
silver bullet. Another McKinsey report provides some perspective:

Excitement over this technology is palpable, and early pilots are compelling. But a full
realization of the technology’s benefits will take time, and leaders in business and society still
have considerable challenges to address. These include managing the risks inherent in generative
AI, determining what new skills and capabilities the workforce will need, and rethinking core
business processes such as retraining and developing new skills.”
In a dynamic work environment, companies can never be prepared enough. Cates suggested
some tips to strategize better for shifts in HR administration:

Learning and developing efficient ways to engage employees. The traditional model of
contacting employees sporadically doesn’t work, leading to a lack of engagement and motivation
for employees to feel isolated.
Daily “virtual water cooler and coffee pot” conversations for remote employees allow them to
check in and address their concerns. It gives them a “voice” and an opportunity to seek ideas and
exchange suggestions.
Training, development and career discussions make employees feel wanted and suggest they
have a future career with the organization.
Checking in on employee mental health allows leadership to head off any major issues an
employee might be experiencing.
Dave Ulrich is the Rensis Likert Professor of Business at the Ross School, University of
Michigan and a partner at the RBL Group, a consulting firm focused on helping organizations
and leaders deliver value. He has published over 200 articles and book chapters and over 30
books. He edited Human Resource Management 1990-1999 and served on the editorial board of
four journals as well as the Board of Directors for Herman Miller (16 years). He’s spoken in 90
countries, performed workshops for over half of the Fortune 200, coached successful business
leaders and is a Fellow in the National Academy of Human Resources.
David Millner has a business background followed by 30 years of internal and external
consulting experience in NatWest, Kenexa and IBM. Dave worked directly with different global
and multi-national based organizations offering organisational effectiveness-based solutions
focusing on future proofing their businesses.

He is a regular presenter at HR conferences promoting the role of technology and people

analytics to demonstrate tangible business value. His first book ‘Introduction to People
Analytics’ on the changing role of HR and the increasing demand for data insights was launched
in April 2020.

He’s regarded as a social media guru through @HRCurator, referenced as being one of the Most
Influential People on Twitter in a number of HR subject areas. He’s an Associate with CRF, Hult
Ashridge Business School, the Centre for Effective Organizations at USC and an Adviser to
iPsychTec.
Professor Steven Cates serves as a Graduate Professor of Human Resource Management in the
School of Business and Information Technology at Purdue University Global, the first online
university to offer “extreme personalization” to working adult students. He has over 30 years of
managerial experience in all facets of HR and over 20 years of collegiate instruction experience
at both the undergraduate and graduate levels in business. He is certified through the Society of
Human Resource Management and specializes in employment law, diversity issues, talent
management, and strategic human resource management. In addition, he has authored over 100
publications in the field of HR management and marketing and served on dissertation
committees.
Human Resource Management involves creating personnel policies and procedures that support
the objectives and strategic plans of the organisation. Establishing an environment that reflects
fundamental values and gives employees the resources they need to be as productive as possible
is important for accomplishing this goal. This article outlines the emerging trends in Human
Resource Management.
Hybrid Work Culture
In today’s time, a hybrid work environment is also a logical first step for a company looking to
grow into international markets. The hybrid culture unavoidably creates fresh chances for
development and income. Due to the emergence of hybrid culture over the past few years,
growing into other markets has been simpler and more economical.
2) Increase in Global Expansion
Exploring the opportunity of globalising your work by transitioning to remote working is
becoming increasingly popular in the current times. With advancements in technology, and
governments relaxing policies in the post-pandemic era, businesses have found it easier to
establish a foothold in foreign countries.
Managers frequently find themselves unable to carefully review every single employee’s work
due to the expanding number of hybrid personnel. A rise in employee monitoring strategies as a
result of the lack of interpersonal interaction has given rise to yet another set of trends in HRM.
The Streamlining of everyday Tasks
HR directors can use AI-powered solutions to automate their everyday chores that were
previously completed manually in order to prioritise high-value and productive operations. In
this technologically advanced world, procedures like screening, sourcing talent, onboarding,
monitoring attendance, etc., can now be carried out by the systems.
Enhancing the Recruitment Processes
HR has a responsibility to match employee skills with organisational and leadership demands.
Therefore, HR must be in charge of a variety of crucial procedures to make sure that the
company can develop talent markets, encourage cooperation, and make data-driven decisions.
Mental Health Support
We have all experienced the Covid epidemic differently. But, research indicates that over the last
year, employee mental health has deteriorated. As opposed to being a lovely “add-on,” mental
health care is now required by employers rather than being an option.
Productivity
The remote working model has drastically changed the idea of “productivity” for Human
Resources departments, with automation and the Cloud now enabling them to measure and
monitor the productivity of remote employees, as well as share documents quickly.
Getting Back to the Workspace
The health, well-being, and morale of employees must be taken into account when making this
decision. The most effective way to ensure the wellbeing of all staff is to foster open
communication within the company, so that HR can determine the best time to welcome people
back.
Conclusion:
Human Resource Management is an ever-evolving field, and staying up-to-date with the latest
trends is essential for staying competitive. From utilising AI and automation to leverage data-
driven insights to embracing flexible work schedules and remote work, employers must invest in
the right tools and strategies to remain ahead of the curve, ensuring the success of their
organisation and their employees.
Many business schools have now started to offer online HR management courses, these course
provides one with an understanding of HR management practices for recruitment, compensation,
and performance reviews. By doing certification courses one can gain insights into the people
management ecosystem and how people-centric analytics and digitalisation can help create a
human-centric culture of innovation that drives an organisation towards its goals.
Two years after starting a new decade, the world seems quite different from the one we knew in
2020. We experienced one of the biggest struggles in history, battling a pandemic, societal
upheavals, and economic crises. These events reshaped our lives and habits and affected our
predictions for the previous year. As a result, HR trends we thought would be the highlight of
2023 either didn’t happen or came in a slightly different form.

The HR industry is revolutionising at a rapid speed due to the advancement of technology.

Hence, new HR trends in 2023 are crucial to maintaining the HR industry’s workflow. Recruiters
and HR teams want to follow future directions, but several queries are going across in their
minds, such as: What are the different upcoming HR trends? How many HR trends are there for
2023?

In addition, Our natural curiosity to think about future HR trends and what will shape the future
remains. Having those ideas, insights, and information helps us navigate what’s ahead of us and
create goals. We analysed what the HR future will look like and which HR trends will dominate
the recruitment landscape.

In this blog, recruiters and HRs will get information on the Top 15 Upcoming HR Trends To
Consider In 2023.

Latest HR Trends to Shape the Business

The past years were difficult for the HR industry, and the HR team faced many challenges. But
here, we have reached the new year, i.e. 2023, and to enable the HR teams to achieve their goals
by following the emerging HR trends, we have prepared the future HR trends.
These HR future trends will help mass recruiters and HRs cover up all their previous down
graphs by the end of 2023. Trends in HR permit the HR industry to focus only on the worthwhile
section of human resources during the year to become desirable in human resource management.

Here are the top 15 HR trends for 2023.

1. A compromise between remote & office work

Even though remote work isn’t a novelty and has kept its position on a list of HR trends in the
last few years, only recently remote workers became the majority. What once was a prediction
became a burning topic that will keep its intensity in 2023.
Working from home has myriad benefits that ensure it won’t fade after the vaccine for COVID-
19 is available to everyone. If telework is not an option, 55% of employees will look elsewhere.
It is a kind of work that makes workers more productive, leaves them more time with families,
and takes less time off.
But not every profession lets you work remotely, at least not full-time. Thus, some employers
prefer having their employees on-site.

So, leaders will have to find a compromise that will be beneficial for the business and
employees. Whether that’s to allow their staff to work from home at least twice per month or to
let them choose, employers should think about a solution that will satisfy everyone.

2. Employee experience is vital

The emphasis on employee experience peaked last year due to the aftermaths of the coronavirus.
Workers had to juggle between surviving a pandemic and achieving satisfactory work results,
which often caused stress, lack of productivity, and burnout.

Employers had to make the employee experience a priority and ensure that their staff had
everything they needed to handle their responsibilities and stay safe. But it isn’t all about
providing workers with the necessary equipment, the possibility to work from home, and well-
being programmes.

Last year forced companies to include employees’ personal lives and issues into the picture and
understand how that affects their work. For a long time, we thought that work and personal life
were two separate categories, but we are now reminded that if one is in danger, the other will
face the consequences too.

One of the HR trends for this year will be to consider how to extend employee experience and
include financial, physical and mental health support.

3. Continuous learning
We can consider this trend as one of the latest HR trends. During the quarantine, many people
found ease in studying, learning a new language, or practising old skills. That was a reminder of
how powerful it is to acquire information or deepen the old ones. Knowledge leads to personal
and professional improvement, which is also an advantage for companies.

One of the principal HR trends in 2023 will also be learning. Organisations will invest in it,
providing employees with new skills, development, and greater chances of reaching higher
levels.

The key to making learning continuous is to make it available at all times. That is why most
companies will opt for creating e-libraries, online workshops and courses.

4. Use the latest technology as a way to drive trust

The pandemic caused uncertainties, fear, and anxiety; these are times when we need
transparency more than ever. Work is not an exception; employees expect employers to be
honest, share updates with them, and provide feedback.

Workers don’t want to wonder if they might lose their job tomorrow and if managers are
satisfied with their work. To keep their employees updated and everything transparent, many
employers will integrate HR technology with staff self-service.

With such tech at their disposal, employees will have access to feedback, the latest information,
and tasks. Transparent tools that track employee progress and information that are easily
accessible for both parties will be one of the principal HR trends this year.

5. Employee well-being and wellness programmes

In the post-COVID-19 era, well-being programmes are not only nice to have anymore. They are
necessary. The pandemic didn’t leave anyone unharmed, and companies need to implement
methods to help employees cope with the new realm.

In 2023, HR will have to find ways to remove the stigma around mental health and provide
employees with all the support they need. That will include surveys, research, creating
workshops, and leveraging tech. Employers will use various resources to develop well-being
programmes to make sure employees are healthy, safe, and productive.
6. Increase online communication to improve
Remote work is here to stay, and companies will have to enhance communication with teams
working from home. Thus, virtual meetings, recruiting, and onboarding may become a norm,
which requires stellar communication.

Companies will have to invest in high-quality HR technology that allows video interviews,
continuous virtual communication, and meetings. But not every individual knows how to use
these tools, so employers will also have to provide employees with digital communication
workshops.

7. Reskilling and internal mobility

Hiring freezes are one of the most damaging consequences of the pandemic. Many companies
have to put on hold finding new talents, even though they might need them. Hence, they will
have to be resourceful.

That means that before deciding to seek new candidates, recruiters will conduct an analysis that
can show if the talent they need is already there.

When an employee is not fully compatible with a new vacancy, they might go through reskilling,
which would provide them with the necessary skills.

8. Flexible requirements
The pandemic wasn’t only a reminder that people need certainty and safety. It also reminded us
that change is the only constant. And changes demand flexibility.

That will reflect in recruitment, and in the future, the candidate requirements could start being
more flexible. Instead of considering job seekers with higher education and extensive experience,
big enterprises could be more open to self-taught candidates without a degree.

9. Artificial intelligence in recruitment

In 2023, the world will rely on technology more than ever. That trend will only grow this year,
and companies will implement advanced AI-based technology and tools
Recruiters will automate tedious and repetitive tasks. That will give them more time to focus on
meaningful elements of recruitment.
Artificial intelligence is the present and future HR trend, and its presence will become
widespread. Companies will use it to source candidates, parse resumes, and onboard candidates
with more ease and accuracy. Even though 17% of organisations use AI in their HR function,
another 30% will use it by 2023.
10. Company culture is essential
Job seekers seek companies with attractive employee perks and benefits, a good reputation, and
compatible company culture. Emphasis on organisational culture will continue to be among the
top HR trends in 2023.

Hence, leaders will have to ensure that they are showcasing what it is like to work in their
company, what kind of candidate profiles they are looking for, and why one should want to work
for them. Employers will have to be extra careful to target the two young generations:
millennials and gen Z.

11. Millennials and Generation Z

While the first ones are already the largest generation in the workforce, their younger
counterparts, gen Z, will join them soon. It is why this year, one of the top HR trends will be
understanding these two generational cohorts.

These two generations have different priorities, goals, and habits than Baby boomers and gen X.
If employers want to attract them, they will have to learn how to address their needs.

12. Mobile-friendly recruitment

The adverse effect of COVID-19 caused recruitment to become remote, forcing recruiters to
adjust the process. But young job seekers are also affecting hiring because they mostly use their
mobile phones to seek work. That is why recruiters will have to tailor job ads to these
requirements and make them mobile-friendly.

13. Diversity, inclusion, and equity

The benefits of a diverse workforce are not a secret anymore. Most companies are implementing
D&I policies and efforts to attract and foster multicultural teams. That HR trend will remain in
2023, and many recruiters will turn to niche hiring platforms to ensure they are reaching
underrepresented talents.
2023 is bringing a changed world of work. The pandemic has propelled digital transformation
four years into the future, and the employee-employer relationship has transformed. Although
HR has been leading change and crisis in the past years, it runs the risk of missing the boat on
this fundamental shift in how we work.

We believe that 2023 is HR’s window of opportunity to reposition the function’s value
proposition in the post-pandemic reality. Human Resources professionals have played a
significant role in guiding organizations through the storm of the pandemic and subsequent
inflation surge and economic slowdown. In other words, HR can make a tremendous impact on
organizations if adequately enabled.

We’ve identified 11 HR trends we expect will be shaping 2023 in the workplace. Some trends
have been ongoing for a while now, but recent developments have accelerated them. Many are
the result of drastic changes that organizations have had to make and, in some cases, are still
facing.1. A focus on total wellbeing
There’s a silent crisis happening in organizations. According to the American Psychological
Association (APA), nearly 3 in 5 employees reported negative impacts of work-related stress in
the wake of the pandemic. 87% of Americans feel anxious about inflation, and 7 in 10 employees
are worried that their compensation hasn’t kept up with the changes in purchasing power.
HR has arguably been impacted too. The function played a leading role during the pandemic,
which has taken its toll. Research by Workvivo reported that a staggering 98% of HR
professionals report feeling burned out at some point in the past six months.

Our first HR trend for 2023 is that organizations will take more responsibility for this looming
burnout crisis among employees across the business. First, because it is the right thing to do, and
second, because it poses a threat to the continuity of the organization.

The first step will be for HR to overcome its own burnout crisis. Although this may go against
the nature of Human Resources, which must focus on helping others, HR professionals should
put on their own oxygen masks first. Otherwise, the department will not be able to help the rest
of the organization.

Next, we expect HR to move towards a more proactive approach to wellbeing and resilience.
This involves developing a more holistic employee wellbeing approach focusing on mental,
physical, and financial wellbeing.2. Managing workforce ecosystems
While HR has traditionally focused on permanent employees, other types of workers, like
contractors, gig workers, and employees working for supply chain partners, play an increasingly
important role in the company’s service delivery.
In the United States alone, 16% of Americans have earned money through gig platforms.
According to ADP, in about 40% of companies, one in four workers is a gig worker. This means
that a big part of the total workforce goes unmanaged, and HR is missing out on an opportunity
to make an impact.

We believe that 2023 is the year where HR will begin to manage the complex workforce
ecosystem beyond permanent employees. This has three implications.

First, HR will become actively involved in managing its contingent workforce. They will
integrate contractors, gig workers, and external contributors into the HR value chain. This is not
only a must-do from a value creation perspective but also from a risk viewpoint. HR’s current,
often hands-off, attitude towards temporary staff creates a two-tiered workforce that even leading
companies like Google struggle to adequately manage.

Second, in today’s platform economy, HR can contribute to creating a more blended workforce
ecosystem by adding value to external contributors.

Uber is the largest taxi company without drivers, Airbnb is the largest hotel chain without
properties, while platforms like YouTube, Netflix, and TikTok outsource most of their content
creation. These companies are highly dependent on their contributors. There is a role for HR to
play in making these contributors part of their people practices.

And third, HR should share best practices with supply chain partners, vendors, and service
providers.

The (post-)pandemic era has shown the importance of value chains from a production
perspective and a reputational standpoint. For instance, Rihanna’s fashion label Fenty Beauty
was accused of using child labor in its supply chain.

HR may not drive partnering decisions, but it has a unique opportunity to strengthen best people
practices throughout the supply chain
Example initiatives we expect to see more of in 2023 include the creation of communities of
expertise, mentoring programs for seasoned HR professionals, and job rotation across the supply
chain. Business is not a zero-sum game, especially not when it comes to partners. This is an area
in which HR can create tremendous value through workforce ecosystems.

4. Redefining remote and hybrid work strategies

Work has changed in the course of the pandemic. According to McKinsey, the pandemic has
sped up digital transformation in organizations by three to four years. And workers have adapted
accordingly. For instance, LinkedIn data shows that remote jobs, which make up around 20% of
all jobs on LinkedIn, received over 50% of all job applications!

This illustrates that resistance to some degree of flexible working will put businesses at a
competitive disadvantage. Not all organizations have realized this, and they continue to hold
onto outdated strategies that previously made sense. For instance, 95% of executives believe that
employees need to be in the office to maintain company culture. Also, a Nature Human
Behaviour study found that the collaboration of Microsoft employees dropped by 25% and
became more siloed in a remote setting compared to pre-pandemic levels.

Despite this, 64% of employees would consider quitting if they were expected to return to the
office full-time. Hybrid working has become a part of modern work culture, and we believe
companies like Goldman Sachs and leaders like Elon Musk are fighting a losing battle.

Employees want clear communication and modernized policies. We expect that in 2023, HR
practitioners will set clear principles about how, where, and when work is done. They will
facilitate internal conversations on this topic and push their organization to make decisions, even
if they are temporary, as organizations explore different workplace strategies.

HR professionals will also educate themselves and managers on overcoming proximity bias,
which is an unconscious tendency to favor employees you often see in the office over remote
workers. They’ll work on establishing objective performance metrics, promotion, and salary
increase criteria.

Next, HR will reinvent the role of the office. Clear working policies will impact office planning
and utilization. This will lead to better-designed workspaces, flexible spaces to combat potential
loneliness at home, and workspace allowances to upgrade home facilities.
Last but not least, HR itself will become more hybrid and explore remote work. There is a
leading role for HR to play when it comes to enabling better outcomes with remote working, and
we expect to see much more of this occurring in 2023.

5. The evolving role of the CHRO

Today’s CHROs are wearing many different hats.

During times of crisis, like the COVID-19 pandemic, the initial days of the war in Ukraine, and
rising inflation, the board looked to the CHRO to lead and respond. As a result, HR has been in
the spotlight since early 2020. In most organizations, the CHRO has led discussions in board
meetings when it comes to policies, business continuity, and employee safety and productivity.

What’s more, the CHRO is responsible for spearheading environmental, social, and corporate
governance (ESG) goals. Increasingly ambitious ESG goals and investor appetite toward
companies with this focus place the CHRO in a position to take ownership of this topic.

This is compounded by the CEO’s evolving role. According to the 2022 Edelman Trust
Barometer, employees have more faith in their CEO than in government leaders, journalists, or
any other CEOs. Also, 60% of employees expect their CEO to speak out on social and political
issues they care about. This changing role of the CEO leaves room for the CHRO to understand
employee sentiment and counsel the CEO on when to speak up and what to say.

With these factors combined, we expect that 2023 will be the year in which the CHRO solidifies
its position as an irreplaceable part of the board and a key advisor to the CEO.

6. HR enters the metaverse

Gartner predicts that by 2026, 25% of people will spend at least one hour per day in the
metaverse. This means that the leading organizations in this space will use 2023 as the starting
point for some of these activities, including virtual events, employee onboarding, career fairs,
and meetings.
There’s also potential to use the metaverse for workplace learning and training. Meta is investing
$150 million in creating an immersive learning ecosystem that will make learning more
accessible through the metaverse.

The few organizations that have started to leverage the potential of the metaverse will have a
more modern employer brand, more engaging interactions with remote candidates, and can even
drive productivity for the organization.

We believe that in 2023, a select group of organizations will set themselves apart by investing in
the metaverse. These will be not only large enterprises with custom-designed metaverse
environments but also innovative small businesses utilizing virtual workspace software.

HR plays a crucial role in helping the organization figure out how to use the technology best.
They will need to develop new hybrid working policies to ensure healthy metaverse working
practices and teach leaders how to lead in this new environment. The golden rule should always
be: Don’t do anything in the digital world that you wouldn’t do in a physical workplace.

It also provides HR with a unique opportunity to redesign the (virtual) workspace beyond the
traditional, often uninspiring office environment. The layout of a space influences how people
use it. A round table invites discussion, while a rectangular table tends to be more hierarchical,
with the boss seated at the head of the table.

The metaverse opens up the possibility of reimagining a productive, collaborative, and creative
work environment unconstrained by physical norms. The lack of physical norms also creates
additional opportunities for disability inclusion.

Despite the hype, we want to stress that the metaverse is a means to an end. It should drive
business performance and employee experience and shouldn’t distract from the core business.