HR Trends We’re Expecting to Catch On in 2023

Steven Kazinsky
December 14, 2022
min read
September 20, 2023
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As we enter into the new year, its time to spruce up what we know — and stay in-the-know. Here are the top HR trends that you'll want to keep track of going into 2023.
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The workforce has experienced incalculable changes in recent years. Now more than ever, human resources professionals play a critical role in keeping an organization healthy and functional.

These changes and evolving needs will be reflected in 2023 and beyond. Here are some of the upcoming trends we expect to see and catch on in the coming year.

Increased use of applicant tracking systems

Applicant Tracking Systems (ATS) are becoming more popular with each passing year. This software scans resumes for keyword relevancy to determine whether they should be reviewed by a hiring manager. In essence, the more keywords and elements on your resume that are aligned with the job posting, the more likely your application will fall into human hands. 

The adoption rates of ATS are pretty spectacular. Reports indicate that as many as 98 percent of Fortune 500 companies use an ATS with 66 percent of large companies following suit. To date, only 35 percent of small businesses use this technology. 

As 2023 progresses, it's expected that more small businesses will adopt an ATS system. The benefits are hard to ignore: streamlined systems, cost savings, and better resource management overall. Yes, job seekers can use a resume keyword scanner to improve their chances, but this technology will still help narrow the options. 

This isn't the only change that AI will bring to human resources. While the technology is still early, many large companies are implementing algorithmic human resources management. These programs use data to determine who gets hired, fired, and promoted. HR managers can expect to hear more about these systems throughout 2023 and 2024. 

Increased efforts in employee satisfaction

The past few years have been among the hardest for the average worker. Employee burnout (and turnover) is at an all-time high. There's been a paradigm shift in how people think about work. 

Many employees are prioritizing mental health and wellness over work performance, refusing to go above and beyond for organizations that treat them poorly. This is a stark contrast to pre-pandemic mindsets and the mentality of previous generations. 

Millennials, many of whom entered the workforce just in time for the market crash of 2008, and Gen Z would rather be unemployed than do a job they hate. 

This shift is putting extra pressure on HR professionals to explore ways to improve employee satisfaction, productivity, and retention. Things like revisiting flexible work policies, encouraging mental and physical wellness initiatives, and putting recognition programs in place are essential in 2023 and beyond.

With continuous staffing shortages and increased pressure to perform, it's no wonder that 98 percent of HR professionals are also experiencing burnout. 

Employer presence in financial literacy

With global turmoil and inflation causing additional stress and pressure at home, now is the ideal time for employers to embrace financial literacy programs. As with any new employee-centric initiative, HR professionals will play a pivotal role in facilitating these efforts.

A recent survey showed that only 13 percent of workers were able to pass a financial literacy assessment. Many employees have indicated financial empowerment and wellness as one of their top benefit requests from employers. 

In 2023, HR professionals will be tasked with creating financial wellness programs as a benefit or company culture element. Consider that 72 percent of employees are stressed about money, which leads to additional sick time and loss of focus. Helping employees achieve financial wellness is a powerful way to establish trust and boost retention in the coming years.

Refining the hybrid work model

Remote work and outsourcing were already on an upward trend before the pandemic. The sudden shift increased the prevalence of this work style exponentially. Now, many organizations are facing added complexity in blending in-office, remote, and contract workers.

For example, a modern team might be comprised of a small group of employees at headquarters, an equal number working full-time from home, and contractors hired for team augmentation. 

There are pros and cons to each style of work, leading to several subcultures within one organization. In 2023, companies will continue to refine their approach to improve collaboration and create functional teams.

Training & promoting from within

Staffing shortages and employee burnout are expected to continue into 2023. This will lead to additional efforts in providing opportunities for professional development, training, and education with the intent to promote from within. While this effort is born of necessity, it will ultimately create a better working environment for all.

2023 will be a make-or-break year for many companies. Embracing these human resource trends and investing in a welcoming, employee-centric culture is essential for success.

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