As the second quarter begins, it’s essential to keep up with the latest 2023 HR trends to ensure an HR departments workforce planning success. Employee benefits have always been a vital component for satisfying current and prospective employees. As the world of work continues to evolve, so do the needs and expectations of employees. In 2023, we anticipate significant changes in benefits and HR practices. In this blog post, we will explore nine HR trends HR leaders need to watch out for in 2023, from increased wages and pay transparency to a focus on employee well-being and mental health support. These trends will have a significant impact on providing a positive employee experience and increasing employee retention rates.
1. INCREASED WAGES AND RAISES
With the growing economy and job market, employees are looking for better compensation packages. Offering competitive salaries, benefits, and bonuses can attract and retain top talent. In addition, according to ValuePenguin, 49% of Americans that switched jobs received a significant pay increase. By offering a pay raise to current employees so that they can keep up with the ever-changing economy, employers can continue to keep their current talent.
2. PAY TRANSPARENCY
Employees are increasingly concerned about fair pay, and they want to know how their pay compares to their peers. By being transparent about salaries, employers can increase trust and promote fairness. It’s also important to be upfront with employees about their salary in the early stages of the hiring process.
3. DEIB IN WORKPLACE CULTURE
Diversity, equity, inclusion, and belonging (DEIB) is another trend HR teams should watch in 2023. As more companies strive to create diverse and inclusive work environments, DEIB is becoming a top priority. Providing training, mentorship, and networking opportunities can promote DEIB in the workplace.
4. WELL-BEING FOCUS
Employees want to work in a company culture that prioritizes their health and well-being. DEIB is focused on eliminating discrimination, bias, and harassment to create an inclusive workplace. Offering physical and mental health programs and flexible work arrangements can promote well-being in the workplace.
5. LEARNING AND DEVELOPMENT OPPORTUNITIES
Employees want to continuously grow their skillset and advance in their professional careers. Likewise, employers want to retain top talent while filling in-demand roles. By providing training programs, mentorship, and professional development opportunities both employees and employers can benefit.
6. SKILL-BASED HIRING
In the current worker-friendly market, many employers are having luck with taking a chance on candidates who are eager for a challenge and willing to learn on the job. With robust learning and development initiatives in place, employers can hire workers who are an excellent cultural fit and train them on specific skills or tasks in time. This is essential for promoting diversity and an expansive range in talent and skills.
7. REDESIGNED FLEXIBILITY
Hybrid and remote work arrangements have become the norm for many employees, and business leaders should adjust their policies accordingly. Flexible work arrangements can look different for each employer such as fully remote, hybrid, or even a four-day workweek. Providing flexibility can improve day to day work-life balance and increase productivity in employees.
8. EMPLOYEE MENTAL HEALTH SUPPORT
Between personal life, job duties, economic uncertainty, and the hectic past few years, employees are juggling a lot, which can affect their mental health. Because of this, they are increasingly concerned about their mental health, and they want employers to provide resources and support. Offering mental health benefits, employee assistance programs, and employee resource groups can promote mental well-being and create increased employee engagement.
9. INCREASED FOCUS ON BELONGING
Employees want to feel like they belong in their workplace, and HR management should strive to foster a sense of community. Toxic and hostile work environments are a thing of the past as employees are more aware of employer red flags. Afterall, employees are looking for a work culture and environment that is accepting and inviting. Providing team-building activities, diversity and inclusion training, and networking opportunities can promote belonging in the workplace.
As retaining top talent will continue to be a priority, the above key HR trends demonstrate ways business and HR leaders can elevate and strengthen talent strategies to attract and keep employees. HR professionals can get ahead of the game by continuing to monitor ever-changing employee expectations and labor market trends. Creating a workplace where employees feel valued will prove useful for employee retention and talent acquisition.
If you have questions as about how your HR department can be improved to lean into these new trends, or have any other employee benefit or business insurance needs, contact us to speak to a consultant. You can also follow us on Twitter or LinkedIn or here on the FBS Blog for more employee health and wellness trends.
