8 Important considerations for CHROs in 2023

In 2022, HR departments faced a number of unexpected and conflicting trends. From ‘Great resignations’ at the beginning of the year to ‘unprecedented RIFs’ later on.

These trends presented a significant challenge for HR professionals, who had to adapt their strategies and approaches in order to effectively support the business and the well-being of their employees. This required a flexible and agile approach, as HR professionals had to respond to rapidly changing circumstances and priorities. Despite the difficulties of the year, HR professionals were able to rise to the challenge and support their organizations and employees through challenging and uncertainty.

The sudden shift from high levels of resignation to widespread layoffs was a major challenge for HR professionals. They had to find a way to balance the needs of the business with the well-being and career development of their employees, while also responding to rapidly changing circumstances and priorities. This required a flexible and agile approach, as HR professionals had to adapt their strategies and approaches in order to effectively support their organizations and employees through this challenging time. Despite the difficulties, HR professionals were able to rise to the challenge and provide valuable support during a time of uncertainty.

As we enter 2023, CHROs must evaluate, appreciate and adapt to the following 8 key trends that are shaping the workforce and workplace in 2023 and beyond:

1. Rise of Ethical Moonlighting: Moonlighting is likely to become mainstream in 2023 and beyond. As the gig economy grows, more and more employees are taking on additional work, or “moonlighting,” in addition to their primary jobs. This trend presents a number of challenges for HR professionals, who will need to consider how to manage and support employees who engage in ethical moonlighting. This may involve developing policies and procedures to govern moonlighting, offering support and resources to employees who engage in moonlighting, and finding ways to balance the needs of the business with the needs of employees who are working additional jobs. It’s important for HR professionals to approach this trend in a way that is fair, supportive, and respectful of the needs of both the business and its employees.
2. The paradox of retention and downsizing can be a difficult challenge for HR professionals to navigate. In the wake of an economic downturn, many organizations may find themselves in the position of needing to retain key talent while also downsizing in order to cut costs. This can create a tension that HR professionals need to carefully manage in order to strike the right balance between maintaining a strong workforce and meeting the needs of the business. One way that HR professionals can address this paradox is by being strategic and selective in their retention efforts. Rather than simply trying to keep all employees, HR professionals can focus on retaining key talent that is critical to the success of the business. This may involve offering additional support and resources to these employees, or working with them to develop personalized retention plans. At the same time, HR professionals can work to identify areas where downsizing may be necessary in order to meet the needs of the business, and implement these changes in a way that is fair, transparent, and supportive of affected employees. By carefully navigating this tension, HR professionals can help their organizations maintain a strong and effective workforce while also meeting the needs of the business.
3. Role of HR in ESG: Environmental, social, and governance (ESG) issues are becoming increasingly important to both employees and investors, and HR professionals will need to consider how to incorporate these principles into their organizations’ practices and culture. This may involve implementing new policies and procedures to address ESG issues, such as reducing carbon emissions, promoting diversity and inclusion, or supporting ethical business practices. HR professionals will also need to consider how to communicate their commitment to ESG to stakeholders, such as employees, investors, and customers. This may involve creating messaging and marketing campaigns to highlight the organization’s ESG efforts, or collaborating with other departments to integrate ESG principles into their work. By incorporating ESG principles into their organizations’ practices and culture, HR professionals can help to create a more sustainable and responsible business, and better meet the needs and expectations of stakeholders.
4. Extending D&I to Neurodiversity: As organizations become more diverse, it is important for HR professionals to understand and appreciate the unique strengths and contributions of neurodiverse individuals. A neurodiverse organization is one that recognizes and values the different ways that people think and process information, and works to create an inclusive and supportive environment for all employees. To achieve this, HR professionals will need to focus on neurodiversity and inclusion, and develop strategies and programs to support neurodivergent employees and create a more inclusive workplace culture. This may involve offering training and resources to educate employees about neurodiversity, implementing accommodations to support neurodivergent employees, or creating employee resource groups or other initiatives to promote inclusivity. By focusing on neurodiversity and inclusion, HR professionals can help to create a more inclusive and enriching workplace for all employees.
5. Gig Economy as a key Talent Pool: As the gig economy continues to grow and mature, HR professionals will need to consider how to manage and support a gig workforce. This may involve developing policies and procedures to govern gig work, offering support and resources to gig workers, and finding ways to balance the needs of gig workers with those of traditional employees. It’s important for HR professionals to approach this trend in a way that is fair, supportive, and respectful of the needs of both gig workers and traditional employees. This may involve finding ways to ensure that gig workers have access to the same resources and support as traditional employees or developing strategies to help gig workers feel more connected to the organization. By effectively managing and supporting a gig workforce, HR professionals can help their organizations to take advantage of the benefits of gig work while also ensuring that all employees are treated fairly and supported.
6. Workforce optimization: In order to stay competitive, HR professionals will need to focus on optimizing their workforce to improve efficiency and productivity. This may involve implementing new technologies and processes, such as automation or data analytics tools, to streamline workflows and increase efficiency. HR professionals may also need to consider restructuring the organization to better align with business goals, such as by reorganizing teams or redefining roles and responsibilities. By focusing on workforce optimization, HR professionals can help their organizations to remain competitive in a rapidly changing business environment. It’s important for HR professionals to approach this process in a way that is fair, transparent, and supportive of all employees, and to communicate any changes clearly to help ensure a smooth transition.
7. Technology first HR: HR technology is expected to continue evolving in 2023 and beyond, and HR professionals will need to stay up to date on the latest tools and platforms to effectively support their organizations. Artificial intelligence (AI), machine learning (ML), and analytics will likely find widespread application in areas such as talent attraction, assessments, performance management, remote working, optimization, compensation planning, upskilling, and reskilling the workforce. By staying informed about the latest HR technologies and incorporating them into their work, HR professionals can help their organizations to stay competitive and achieve their goals more effectively. It’s important for HR professionals to carefully consider how different technologies can be used to support their organizations and to approach the adoption of new technologies in a way that is fair, transparent, and respectful of all employees.
8. Organization redesign: As organizations adapt to changing market conditions and customer needs, HR professionals may be called upon to help redesign the organization to better align with business goals. This process may involve restructuring teams, redefining roles and responsibilities, or introducing new processes and technologies. HR professionals will need to work closely with other departments and stakeholders to understand the business’s needs and goals and develop strategies for organizational redesign aligned with these needs. It’s important for HR professionals to approach this process in a way that is fair, transparent, and supportive of all employees, and to communicate any changes clearly to help ensure a smooth transition. By helping to redesign the organization, HR professionals can play a key role in helping their organizations to adapt and succeed in a rapidly changing business environment.

2023 is likely to present a new set of challenges and opportunities to the HR function, and HR professionals will need to be flexible and agile in order to navigate these trends and effectively support their organizations and employees. This may involve staying up to date on the latest technologies and best practices, developing strategies to address emerging trends, and finding ways to balance the needs of the business with the needs of employees. By being flexible and agile, HR professionals can help their organizations to adapt to changing circumstances and succeed in a rapidly changing business environment.