7 Concerns Your HR Team Will Face in 2023

Editor's Note: Take a look at our featured best practice, HR Strategy: Job Leveling (26-slide PowerPoint presentation). Job Leveling is a disciplined approach to gauge the value of work for individual positions across the organization. It entails ascertaining the nature of work done by each position, authority levels, and the effect of each job on business results. Jobs that are configured inadequately bread [read more]

Also, if you are interested in becoming an expert on Human Resource Management (HRM), take a look at Flevy's Human Resource Management (HRM) Frameworks offering here. This is a curated collection of best practice frameworks based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. By learning and applying these concepts, you can you stay ahead of the curve. Full details here.

* * * *

Whether you worry about 2023 being a rough year for small businesses or yours is thriving and growing, hiring and keeping talent features some unique obstacles. As companies move into 2023, some of the same concerns from the last couple of years remain. New ones will surface. Knowing what could possibly go wrong is one way of preparing for any situation.

Your human resources (HR) team can prepare now by looking at what’s most likely to occur in the coming year. What will the top concerns be? Is there anything repeating from 2022? Is there anything new?

What Should HR Be Focusing on in 2023?

The United States Bureau of Labor Statistics estimates around four million people quit their jobs every month in 2022. Although the numbers vary by industry, around half of all workers state they don’t feel secure in their current positions. Many are open to leaving their current positions.

Expect the Great Resignation to continue in full swing into 2023. Some call it the Great Rethink or the Great Rebalance. Whatever term you use to describe the movement, employees are far less loyal to companies than in years past. Employees would argue that brands are also less loyal to their workers.

At the same time, if you want your brand to grow, even during difficult economic times, you must attract and retain top talent. Here are some of the things you can focus on in 2023 to ensure your place of business is attractive to workers.

1. Add Remote/Hybrid Policies

Since the pandemic, more and more brands offer remote or remote-hybrid opportunities for workers. However, with adding a remote workforce, you also must be prepared for the issues that arise from people working remotely.

You’ll want to offer some security training to keep them from disclosing sensitive passwords or other information. Set some policies about work hours to ensure everyone stays on the same page. It’s fine to give them flexibility, but are there certain times you need covered?

You should also consider which jobs you’re willing to let people do from home. Some people might leave a company over lack of remote work availability and seek jobs with companies offering work-from-home positions. How will you combat other companies pilfering your workers for remote roles? What can you realistically offer?

2. Revamp Your Hiring/Firing Policies

Spend time looking over your hiring and firing practices. It’s smart to get a third-party, such as an attorney, involved to ensure you aren’t breaking any regulations or opening yourself to a lawsuit. Make sure you don’t fire employees for discriminatory reasons or in retaliation.

Spend time revamping your policies. Train all HR workers to abide by the rules and document everything carefully.

3. Adopt a People-First Culture

Hiring top talent is more competitive than ever before. The Great Resignation drives people to seek other positions for higher pay or their own well-being. We live in a highly stressful society. Consider your workers’ mental health and how well they handle different challenges from their jobs.

When you care about those who work for you, you’re much more likely to develop loyal employees. They know you care. Caring comes through in the programs you offer, extra time off, understanding about unique circumstances and communication.

4. Find a Purpose

Purpose-driven organizations tend to have happier employees. You can either adopt a cause as a company or give your workers paid time off to volunteer in the community. When those in your employ all come together to accomplish something, it develops relationships.

One thing your HR team may have to navigate is finding a cause that doesn’t alienate anyone. If you embrace some causes, a handful of your customers and workers may disagree with the political stance they believe you’re taking.

It’s best to stick with low-controversy causes. Adopt a local animal shelter, youth cause or environmental group.

5. Offer Ample Paid Time Off (PTO)

Researchers found more than 50% of workers don’t use all their paid time off (PTO). Employee burnout is a serious concern, especially in high-stress positions. However, you can’t force people to take days off.

What you can do as an HR team is encourage regular breaks. People often skip PTO because they worry they’ll lose their jobs. Reassure them they’re doing an excellent job and deserve a break.

6. Upskill Your Workforce

People want to feel you’re investing in them. It’s one of the top things workers cite as reasons they leave positions. Offer education, workshops and send people to conferences.

While it will cost you some funds to pay for education, the results will be more knowledge on your team and happier workers.

7. Improve Management Effectiveness

When things go wrong in a company, it isn’t always the fault of a single worker. The way your leaders communicate and decisions made in the upper levels filter down and impact everyone on the team.

According to Gartner, around 60% of HR leaders say improving leader and manager effectiveness is a top priority for the next year. A truly effective HR team has the confidence to leave everyone down the right paths. Address the emotional aspects of working with humans and you’ll be able to head off many of the potential problems.

Get a Head Start

Knowing what the top challenges might be gives you an opportunity to get a head start on the new year. Look at the issues you’re most likely to face and brainstorm solutions. Don’t be afraid to let your workers have some input on the HR team serving them. Instead of an us versus them approach, your employees and HR department should work as a team to improve the work environment.

Want to Achieve Excellence in Human Resource Management (HRM)?

Gain the knowledge and develop the expertise to become an expert in Human Resource Management (HRM). Our frameworks are based on the thought leadership of leading consulting firms, academics, and recognized subject matter experts. Click here for full details.

The purpose of Human Resources (HR) is to ensure our organization achieves success through our people. Without the right people in place—at all levels of the organization—we will never be able to execute our Strategy effectively.

This begs the question: Does your organization view HR as a support function or a strategic one? Research shows leading organizations leverage HR as a strategic function, one that both supports and drives the organization's Strategy. In fact, having strong HRM capabilities is a source of Competitive Advantage.

This has never been more true than right now in the Digital Age, as organizations must compete for specialized talent to drive forward their Digital Transformation Strategies. Beyond just hiring and selection, HR also plays the critical role in retaining talent—by keeping people engaged, motivated, and happy.

Learn about our Human Resource Management (HRM) Best Practice Frameworks here.