HR Trends for 2023
LinkedIn data from 2022 indicates that Human Resources (HR) had the highest turnover rate of any job function at almost 15%. A company can decrease turnover by increasing engagement, having effective communication between top-level management and employees, and having a healthy company culture. With HR specifically, there are a few additional reasons why employee turnover may be high.
HR professionals have dealt with unprecedented workplace changes over the last two and a half years. Today, we discuss some of these changes and how they affect trends within your organization and HR space this year.
Employee Well-Being & HR Burnout
The global workforce has changed in the last two years due to the coronavirus pandemic that began in early 2020. The changes were stressful for many, and employees began to understand the importance of focusing on well-being.
Many employees now consider employer-provided mental health benefits essential when applying for jobs. A recent Department of Health & Human Services report shows that 81% of workers will look for workplaces that support mental health in the future. That percentage is enormous and warrants an assessment of benefits available to employees in your organization.
Employer-provided mental health benefits are essential for various reasons, one being to help with burnout. Of all the teams in an organization, HR has and will continue to be on the frontline of changes in the workplace. Over the last two years, HR teams have dealt with employee mental health concerns, business continuity, the ‘Great Resignation’ and unprecedented hiring, back-to-office plans, mass layoffs, and remote work management. All of these changes have taken a toll on HR professionals.
A recent Society for Human Resource Management study shows that 42% of HR teams struggle with burnout. Why? HR roles have become much more complex than before the coronavirus pandemic. The increasing burnout levels defend why employers need to focus on providing mental health benefits and the impact the benefits will have on employees.
Skills-Based Hiring & Human Skills
Over the last 3-5 years, a notable change has occurred in the business world across all industries— a focus on skills-based hiring over academic credentials. Employers don’t necessarily want to know if someone has a specific university degree as much as the skills to get the job done. Skills-based hiring increased by 63% in the last year alone, showing that specific career and job opportunities once reserved for individuals with a particular university degree are opening up to those without said education.
As a result of this trending change, workers need to find a way to demonstrate their skills and learn new skills in order to capitalize on opportunities within the job market. A portfolio is a great way to showcase skills, and online learning platforms like Udemy and Coursera are great for building desirable skills that can help lead to career opportunities and advancement. Recruiters will want to be on the lookout for applicants showcasing skills they developed via online learning. If recruiters overlook candidates solely based on not having a specific university degree, they may overlook top talent with the necessary skills for a role.
Some skills can’t necessarily be taught and developed in an online learning platform—human skills are a prime example. A Pearson Skills Outlook report, which analyzed labor markets in the US, UK, Canada, and Australia, shows that the most sought-after skills in the labor market aren’t technical but human skills. The five most sought-after skills include communication, customer service, leadership, attention to detail, and collaboration.
The report also predicts the skills that will be in high demand in the next five years. The prediction includes more human skills: personal learning & mastery, achievement focus, and cultural and social intelligence. While technical skills are still very important, there is a shift from technical skills taking sole importance to human skills also being important for success in a role. Are your recruiters looking for these soft skills in candidates?
Recap & What’s Next
HR teams are in the process of undergoing a lot of changes and evolution. HR professionals are on the frontline of most, if not all, changes that take place in the workplace over time, and this is why HR professionals need to stay ahead of what’s happening in the business world. HR professionals help employees understand what’s happening when any situation arises and how to move forward.
Check out some of the top HR blogs to ensure you stay on top of HR trends and workplace changes. Designate 1 or 2 hours a week to review some of the blogs in the list so you can keep up with what’s happening in the industry.
Next week, we will discuss what your organization can do to keep your best employees. Get a head start so you're ready for our discussion!
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