10 trends changing the way people-centric businesses and their employees impact each other in 2023.
In most industries, the last 25 years has been marked by an almost breathless obsession with the customer—how to acquire them, how to keep them, and how to maximize their lifetime value.
The next 25 years will be similarly consumed by the employee—how to acquire them, how to keep them, and how to maximize the value they contribute to a business.
These workplace trends will not only help organizations learn from the past to better the present, they will also help business leaders and employees to prepare for what is to come.
TREND 1 - HR GOES TO THE C-SUITE
Every business function—from sales to finance to engineering—has faced an evolution at various points in its existence. The pandemic moment was the tipping point for HR leaders, asking more of the function and forcing a conspicuous, almost wartime leadership that may have surprised a few cynics. The CHRO became prominent as HR stepped up—and there’s no turning back.
THE IMPACT - The pandemic and the uncertainty it wrought ushered in a new reality for work, workforce, and workplace. As HR leaders like to say, the future of work is now. The question you need to ask yourself is whether you’re prepared to meet that future. Because disruption is inevitable in business—it’s how we evolve to meet changing opportunities and market conditions—and it’s happening now.
TREND 2 - RESIGNATION/ RETENTION AS YIN/YANG
Resignations are at an all time high, and predicted to stay there. Instead of focusing on the necessity of slowing down resignation rates—especially among key employees—prioritize practices aimed at boosting retention to thrive.
THE IMPACT - Replacement costs are huge. Blanket retention tactics simply aren’t going to cut it when the average cost to replace an employee is 2x their salary, up to $100,000.
TREND 3 - FINDING COMPANY CULTURE IN HYBRID WORK
The pandemic abruptly forced organizations and leadership to confront their long-standing positions about in-office work. Once employees proved productivity and effectiveness working remotely, everything changed. So, how can organizations evenly spread company culture from office to WFH to hybrid?
THE IMPACT - Organizations that listen to employee feedback and prioritize freedom, trust, and flexibility are seeing positive impacts on their people and the business. For example, a year into Spotify's “Work from Anywhere” program which lets employees choose their work mode, has seen the company increase diverse representation, lower time-to-hire from 48 to 42 days, and reduce turnover by 19%. What’s more, roughly 60% of their employees continue to choose the office as their primary place of work, with very few choosing to work fully remote or fully in-office.
TREND 4 - LACK OF DATA INSIGHTS GETS COSTLY
The People Impact Gap is the chasm between the business outcomes executives care about and the talent and skills needed to produce those results. At the root of this gap is a disconnection—and the cost is incredibly high. Some executives will attempt to span it by restructuring HR, but savvy organizations are focusing on another key element: adopting people analytics to realize the impact people have on the business.
THE IMPACT - The financial cost of not connecting people insights to business decisions totals $1.8 trillion, and the human value takes it way beyond that.
TREND 5 - TALENT ACQUISITION GETS AN OVERHAUL
A tight labor market is here to stay, which means leaders can’t rely on the old playbook for managing headcount through a downturn. So what's the key to winning the war on talent? It requires precision, agility, and embracing new, outside-of-the-box strategies.
TREND 6 - ORGANIZATIONAL EMPATHY ENTERS THE DEIB CHAT
The final three letters in the DEIB (diversity, equity, inclusion, belonging) acronym are often overlooked. How are savvy people leaders strengthening their E,I, and B efforts? It starts with organizational empathy.
TREND 7 - PAY TRANSPARENCY OPENS UP
Pay transparency is increasingly becoming a hot topic of conversation, fueled by new laws requiring employers to post salaries in new job postings. A Visier survey found that employees largely agree with this ruling and, in fact, demand greater pay transparency. So where do employers and employees find a middle ground?
TREND 8 - EFFECTIVE BEATS EFFICIENT
The age of effectiveness is already here, and companies need to ensure they’re equipped with the necessary people data and insights to keep up and withstand economic downturns. What can people leaders do now to optimize for effectiveness and put the business on the path to long-term success?
TREND 9 - ALWAYS-ON PASSIVE & ACTIVE LISTENING
A Visier report showed that 89% of employees reported experiencing burnout over the previous year, and 70% would consider leaving their current company for one that offered better resources. How can leaders spot burnout before it occurs? Hint: it’s always-on.
TREND 10 - DATA- INFORMED ETHICAL TRANSFORMATION
As reporting on ESG-related practices becomes compulsory, organizations are scrambling to “do the right thing” to remain compliant. Forward-looking companies are prioritizing driving direct business benefits by complying with regulatory requirements and driving ethical transformation to meet stakeholder and employee expectations. And it’s paying off.