Trends and insights that are at the top of the HR agenda.
I think it’s safe to say that the pandemic turned the world of work on its head. The chaos that ensued with some businesses coming to a grinding halt, others adapting quickly and many shutting down, threw up several new trends, insights and challenges for HR leadership. For full time employees, like I was, whose lives revolved around their workplaces and where they often spent the better part of their day, remote working took some adjustment. And while it felt very uncomfortable at the start, we all adapted quite quickly to the seemingly endless Zooms and Teams and Slack video conferences. People also had to adapt to a different kind of work life balance - the blending and blurring of the lines.
This clearly demonstrated though, that companies could still run their businesses successfully with remote workforces but at what cost. So how will all this ongoing change affect company culture and what trends will shape the workplace going forward? Here are some trends that I expect will be top of mind for HR leaders and managers in 2023.
Here's how corporate culture is set to change
Hybrid workforce strategies are the way forward
Human sills are the new hard skills
Diversity, Equity, Inclusion & Gender Equality are more divisive
Legislation for HR & Recruitment technology
Sustainability and ESG Reporting go beyond compliance
Employee Health and Wellbeing become an imperative
# 1 Hybrid workforce strategies are the way forward.
Many offsite workers registered working longer hours and some were struggling with the distractions of working from home, ending up being more stressed with escalating burnout rates. At the end of 2022 Hubble published the back-to-office strategies of several leading brands in the visualization below.
Obviously, there is no one size fits all and different organizations will evolve differently. More recently we have seen companies like Disney and Tesla insisting that their people come back in to the office full time amidst recruitment freezes and restructures according this report on CNBC, while companies like Google and Spotify announced layoffs.
#2 Human sills are the new hard skills.
The war for talent rages on. Many skilled workers who were laid off found other means of earning an income and surviving the crisis. Many started working freelance, adopted gig work or started consultancies.
Skills based hiring is being prioritized - In the new world of work there will be less of an emphasis on degrees, qualifications and past experience. A recent survey published on LinkedIn Talent blog showed an 20% increase in managerial hires that did not require a 4-year degree. While education remains important it is now distinct from continuous upskilling learning which is seen more as a necessary capability. While human skills such as Communication, Customer Service, Leadership, Attention to Detail and Collaboration are still in high demand, looking ahead to 2026, the Pearson Skills Outlook identified three additional highly prized human skills: Personal Learning & Mastery, Achievement Focus, Cultural and Social Intelligence.
#3 Diversity, Equity, Inclusion & Gender Equality are more divisive.
This is a very controversial topic that probably needs a dedicated post. Definitions around Diversity, equity, equality and inclusion are murky, but are essential to get clear on when it comes to creating a strong company culture. These terms are bandied around a lot these days with many organizations paying them lip-service in an attempt to tick the box.
Diversity and Inclusion in the same sentence feel more like an oxymoron to me. Diversity suggests ‘difference’ and inclusion suggests ‘belonging’ so how does an organization encourage and foster both? What is the difference between Equity and Equality – they clearly are not the same thing. This article by McKinsey provides a good base of definitions.
The gender divide in the workplace – another very controversial subject - is causing a societal imbalance that is unhealthy with women feeling the need to give up their femininity in order to succeed at work. Equally the emphasis being put on raising women up may also causing neglect for the way men are supported in many areas of work and personal life. This interesting article suggests that gender inequality affects everyone and will have serious future repercussions if not addressed.
#4 Legislation for HR & Recruitment technology
In an attempt to become more human centric, more organizations will begin to gather employee data in order to understand their needs, motivations etc. and better engage them throughout the employee journey. This will include employee performance data as well as things like health, living conditions, family and social situations data which will give rise to data privacy concerns and will have the potential to violate boundaries.
In 2023, leading organizations will create legislation to support employees’ need for healthy boundaries. Transparency around how organizations collect, use and store employee data, will become important as well as allowing employees to opt out of practices they do not wish to participate in.
The use of AI and potential bias in the recruitment process will also become a major concern and governments will impose regulations that require employers using AI in their recruitment practices to be transparent, publicize their audit data and give candidates the opportunity to opt out AI led processes.
#5 Sustainability and ESG Reporting go beyond compliance
Environmental, Social and Governance reporting will become a powerful attraction strategy. This has now become a necessity and a pillar of good business practice rather than a nice to have. This is not just an expectation from customers, investors and shareholders but employees as well.
ESG is no longer seen as compromising returns and reducing profitability – quite the opposite. As this McKinsey report shows, it plays an important role in value creation on many levels such as top line growth, cost reductions, regulatory and legal interventions, productivity uplift and investment and asset optimization.
Transparency of ESG reporting is becoming the norm with The Chief ESG Officer joining the C-Suite.
#6 Employee Health and Wellbeing become an imperative
Organizations will become more proactive when it comes to improving Employee health and wellbeing. There are many upsides to this and absolutely no downsides. According to the Future workplace 2021 sentiment survey, 68% of senior HR leaders (of which 40% were CHROs) rated employee well-being and mental health as a top priority.
Organizations are now focusing on building a holistic culture of well-being including physical, emotional, financial, social, career, community, and purpose. Future Workplace has identified seven pillars of employee well-being to guide leaders as they prioritize the well-being of their workers.
One of the most discussed trends since 2020 has been how corporate culture is set to change, and its evolution from remote working to hybrid. Here are some insights that companies can use to enhance Employee Experience and build a strong internal culture.
When not where
Upskill and reskill to retain talent
Revise JDs and performance metrics
Provide equal opportunity for all
Use technology wisely
Create meaningful work
Focus on employee satisfaction
#1 When not where
Hybrid working is the future of work and flexibility is the key. There’s no escaping it. The challenge is to create this seamless bridge between the office and the home. Find ways to bring the offsite experience onsite and the onsite experience offsite in meaningful ways for the whole community.
When I want to go out with my friends on a day trip during the week I start writing at 5am. I’m done by 10 and I free up the rest of my day to have some fun. I love the flexibility of being able to plan my day the way I want to and still meet my deadlines. Now I understand that not everyone is able to work that way and some need more structure and routine than others. Engaging people wherever they are and at times that are optimal for them is a whole new design process. I will discuss this in greater detail in a separate post.
#2 Upskill and Reskill to Retain Talent
Virtually every industry has been transformed by technology, and we’ve seen the top skills transform to reflect this new age of hybrid workplaces, where all functions are increasingly dependent on digital tools to collaborate and perform day-to-day tasks. Recent LinkedIn data shows the skill sets for jobs have changed by around 25% since 2015. By 2027, this number is expected to double. Learning is the new earning and a continuously learning organization will have programs to continually upskill their employees in order to retain them.
It’s a well known fact that the average cost to replace an employee is 2X their salary. These high retention rates are not sustainable and must investment in retention for growth and longevity is clearly a priority.
#3 Revise JDs and performance metrics
The pandemic pulled the future forward, accelerating the need for new skills across all sectors. And in a labor market where many people are reconsidering their career paths, it’s critical for them to understand which of their skills align to those needed in fast-growing and higher paying roles (and which skills are gaps). Join the dots and find logical skills matches.
A flight attendant, for example could have a skills match with a customer service representative, and a driver may have skills match with a supply chain associate. The skills that you need may not come from traditional sources so be open to looking further afield and fill gaps with reskilling as part of the onboarding process.
#4 Provide equal opportunity for all
In my view the over emphasis on certain groups of people based on their gender, ethnicity, social status, physical challenges, etc. are just exacerbating the problem and causing more of an imbalance, creating unhealthy competition and demotivation. Companies should be focusing on creating a framework and environment that gives everyone equal opportunity to succeed based on the effort they are willing to put in, with a reward mechanism based on meritocracy.
Yes there will always be those that need support and a helping hand and there should certainly be opportunities for them to receive it in a fair and equitable way. The fact is that we are all individuals with individual circumstances. The aim should be for companies to incentivize and reward employees based on a fair exchange of value.
#5 Use technology wisely
I am continually amazed and excited by how Technology is improving and enhancing our lives when it comes to productivity. Making technology our servant rather than a crutch is the key. 10 years ago I would never have imagined creating my own website and blogging across multiple social channels. The fear that AI will put people out of work is unfounded. Well, it will if you let it and it won’t if you use it wisely. Either way learning how to use it will create new jobs and new possibilities. I know I will use it to become more efficient, freeing up time for more creative pursuits.
Yes, technology can also be addictive, but moderation is a principle of life. As the old Greek saying goes “Meden Agan” - nothing in excess. Using technology to empower, enable and connect your community, can transcend time and space barriers so use it to enhance not exploit.
#6 Meaningful work
Most employees especially the millennials are motivated by work that gives them a sense of purpose. That may mean different things for different people but a sense of shared values and belonging are extremely important. Sustainable business practices, ‘giving back’, ‘doing good’, the ‘opportunity to make an impact’ and ‘make the world a better place’ are some of the things you’ll hear them say when asked what motivates them and what they want in an ideal workplace environment.
While these may sound naively idealistic, they need to be taken seriously. There is enough evidence from post pandemic surveys to show that more people will work for less money if they feel they are doing meaningful work that brings them personal satisfaction. This is a powerful attraction as well as retention strategy.
#7 Focus on Employee satisfaction
Map the employee journey and lifecycle and proactively seek out feedback at each touchpoint and milestone. Encourage open communication and act on the feedback. Introduce health and fitness protocols into daily routines and processes such as exercise, rest times and meditation practices. Provide opportunities for healthy nutrition and social contact. Proactively manage and harness stress for positivity, a sense of achievement and progress. Remunerate and reward fairly for excellence, output and going the extra mile.
Conclusion
As an organization grows, evolves and transforms, the internal culture also needs to evolve to meet new challenges as well as environmental changes, but the intrinsic values should not be eroded in the process. Culture can be formed by design or by default. The danger of the latter is that it has the propensity to grow many different heads, arms and legs and becomes impossible to manage especially in times of change.
If an organization is in the throes of drastic change and transformation, the culture is the glue that holds it all together. It can create drag or help accelerate the pace of progress depending on whether the vision, values and mission are clearly articulated and communicated and everyone at all levels feel a sense of belonging, connection and dedication to the expected outcome.
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