HR Trends for 2023 – A Paradigm Shift
“For last year’s words belong to last year’s language and next year’s words await another voice. And to make an end is to make a new beginning.” – T.S.Eliot
The above quote definitely rings a bell in all of us! As we are all gearing up to welcome another year, it is very important for us to revisit and carry forward the best.
All of us have witnessed and have been an integral part of the changes and the progress that happened in the field of HR. Pandemic and the post-pandemic phase have brought about so many changes and pushed the entire HR fraternity, irrespective of the industry, to come up with innovative and sustainable ideas to keep the momentum on.
Employees became the foremost priority and the focus on monetary dimension took a backseat. The entire world echoed with one voice that the employees physical, mental and emotional well-being played a vital role in the progress and success of any business. The HR trends listed below are the best takeaways from the year 2022 that you should definitely know about.
Hybrid Working Model:
According to one of the surveys conducted by ET Bureau, Indian employees prefer hybrid work model over the traditional work from office model. This is an ongoing model that will stay for years to come. The HR will have to relook into the employee benefits, policies and employee engagement process in order to make it a win-win situation for both the sides.
The hybrid work model not only considers varied employee demographics but also unites people with different ideas which will help in enhancing a better, transparent work culture. This model is definitely a boon for the HR as it helps largely in retaining the talents.
Diversity, Equity and Inclusion (DEI):
This is the next important framework that HR will continue to work on. Many organizations have already started hiring employees from different demographic backgrounds. The HR will have to create, rethink or introduce policies that will provide equal and fair career opportunities to all the employees based on the individual needs. This not only provides them equal access but also empowers them which indirectly contributes to the growth of the organization.
Inclusion is one of the important concepts in the HR trends. The inclusion of LGBTQIA+ community is the next big thing to focus. Many corporate companies in India have now started following in the footsteps of Godrej, the pioneer who launched the Project Rainbow for LGBTQ members to apply for internships and full-time positions in the company.
According to a blog published by Naukri, a few of the Indian companies that have already embraced and have come up with friendly policies for the employees from the community are TATA steel, RBS, TCS, Razorpay, Accenture, Tech Mahindra, Hindustan Unilever Limited, Microsoft, Axis Bank and Capgemini. The HR will have a huge role to play in terms of investing heavily for the DEI. This not only brings in more talents but also helps in positioning the brand and making it widely visible across different industries. They will need to develop more programs for existing employees to educate them on the subject, as well as be more sensitive and inclusive of this group of employees.
People-First Culture:
This is yet another trend that is already being enforced and will last for many years. Transparency has become one of the key features for retaining employees. It is very important to look into the needs of the employees and check regularly whether they strike a chord with the values and culture of the organization.
If only noise prevails, this will undoubtedly have an impact on overall progress. To avoid such a situation, the HR department will have to make the recruiting process more effective. Apart from looking for the right skills, ideal knowledge, and great talent, HR may have to look into the personalities of the potential recruits.
They may have to check on the adroitness and should map it along with the organization’s values. The introduction of psychometric tests will help to a great extent to zero in on the right fit and will aid in maintaining an intact work culture.
HR Digitization:
Though the HR department’s primary function is to deal with people, digital transformation has become indispensable in recent years. The automation process makes the hiring process quite easy and saves time.
There are many plug-and-play modules that will ease the job. Technology has replaced traditional paper and pen work. The HR will have to upgrade their technical knowledge as per the current and future needs of the organization.
Upskilling and Reskilling:
The Mercer 2022 Global Talent Trends study reveals that executives in India are focusing on workforce upskilling and reskilling. Lack of time has pushed the HR to relook at the skill set and redesign the strategies for talent hiring. Many companies have started training their employees on how to upgrade their skills and have come up with learning programs in order to bridge the skill gap.
It is ensured that the employees are equipped to meet the clients’ expectations. With a high demand in the market for talent with the right skill set, employees will benefit from upskilling and reskilling. It also saves time and money for the management and helps them stay updated with technology, regardless of the field they belong to. This is another great idea to retain and use the resources effectively within the organization.
Along with these takeaways that will be retained for the future, the major focus areas for HR might be on the following:
Gig Economy:
Many companies in India are now moving toward the gig economy. The HR department has to focus well on gig workers in terms of hiring and bringing in new and fresh talent, as well as tying up with consultants to do the right job at the right time.
This will be a favorable situation that can be path-breaking for organizations and individuals who will be working on an assignment basis. According to NITI Aayog, India’s gig workforce is expected to rise from 77 lakh in 2020-21 to 2.35 crore by 2029-30.
Experiential Learning:
This will be the most-sought after HR trend. The employees will be asked to learn by experiencing real-life scenarios. This will improve their cognitive and problem-solving skills. The HR department will have to come up with various training modules, learning programs based on metaverse, gamification and AI embedded technology. This will make the learning experience of the employees more interesting and engaging, which will pave the way to a wholesome process in terms of rewards and recognition.
Employee Wage Code:
With the new employee wage code, the compensation philosophy will undergo a major makeover. HR may need to educate the employees, especially the ones belonging to Gen Z market, as the take-home remuneration will be affected. With the new employee wage code, the compensation philosophy will undergo a major makeover.
The HR may need to educate employees, particularly those in the Gen Z market, because their take-home pay will be affected. Though the retirement benefits are good, it will still be difficult for HR to hire. The employee wage code will also empower the employees to voice their opinions and talk about their rights. The organisation will have huge responsibilities on the statutory front.
Data Protection Act:
The Data Protection Act can be passed anytime in 2023 or in the near future. The initial work will start in 2023. Taking the dynamics and demographics into account, the HR department will have a huge role to play in data protection with respect to formulation, compliance, and design.
Along with that, they will have to do brainstorming in order to come up with innovative ideas to adhere to the data protection act, which will be similar to the GDPR.
The road ahead in 2023 looks interesting and promising. The end of the road in 2022 will make you retrospect and introspect because every end has a new beginning!
Here’s wishing all the HR leaders out there a wonderful and fruitful year ahead in 2023!
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