Pooja Patil
Pooja Patil

The human resource industry has a long-known history of dealing with unforeseen circumstances and finding a way through the most challenging situations. However, with the turn of the decade, we have witnessed a global pandemic, a likely global recession, and a war. Now is when HR functions have become as important to organizations as finance or global security.

Recent unforeseen circumstances due to global issues have brought in an array of new challenges for businesses worldwide. Organizations have been striving to navigate these challenges and stay ahead of the curve in today's competitive business environment. The same goes for human resources - the vast majority of organizations have been experiencing this significant change in one of their most crucial processes, human resource management.

According to Gartner, employee experience, change management, and the future of work are a few of the top priorities of HR leaders.

With evolving times and advanced technologies, businesses today have found their way around dealing with challenges and setting new HR trends. Here are some top HR trends we’ll likely witness in 2023.

Four HR trends in 2023

In the last few years, HR functions have been tested like never before worldwide. HR leaders have faced countless disruptions, from abrupt shifts to remote and hybrid work, economic volatility, and geopolitical events. These significant changes, elevating digitization journeys, and shifting employee expectations have posed a real challenge for HR professionals. However, technology has made HR functions a lot easier and better. Here are four HR trends expected in 2023.

  • Future of work

  • The 'future of work' indirectly refers to the remote and hybrid workforce. This shift in the work mode is a seismic change for several organizations, yet it is only a part of the equation. Anticipating future needs of talent teams or workforce planning is at the epicenter of a future of work strategy, and so the top priority for HR leaders.

  • 42% of HR leaders say the future of work is their top priority.

  • On the other hand, 43% reported the absence of an explicit future of work strategy.

  • Today, for most organizations, workforce planning is disconnected from reality. And the current strategies are futile at combating the disrupting landscape. However, integrating AI and ML in HR will likely remain a sweeping trend.

  • 35% of organizations reported using AI in business, while 35% are exploring it.

  • In the coming years, the trend in AI integration will assist HR teams in better analytics, predictions, and diagnoses to make informed decisions based on data - helping the organization become more agile. AI will likely be the stepping stone for HR teams to furnish work-life balance for their employees - especially hourly and frontline workers. In addition, automating repetitive, mundane HR tasks will allow HR professionals to spend more on delivering the best employee experience.

  • Employee experience

  • Employee productivity and engagement is the key to a successful business. A dedicated and engaged employee brings passion and commitment to the work, positively impacting the business's growth. However, to engage today's modern workforces, organizations must deliver an uber-tech, consumer-forward convenience - in a nutshell, an elevated and evolved employee experience.

  • 47% of HR leaders say that employee experience is a top priority.

  • There are numerous reasons why employees feel unsatisfied and unhappy at the workplace. Some expect competitive pay and attractive benefits, while some seek an employee-friendly environment. Many also lose interest in their current jobs because they lack compelling career paths.

  • 44% of HR leaders believe their organizations do not have compelling career paths.

  • According to a survey by Gartner, 1 in 4 employees expressed confidence about their career at their organization, while three in four employees are looking out for new roles and showing interest in external positions. Moreover, the work landscape is experiencing a sweeping change – career options are less visible, current skills are becoming obsolete, employees aren't trained for future roles, and existing jobs are less likely to satisfy employee needs. This represents a new career imperative for HR leaders to create suitable careers for employees and provide them with the best employee experience.

Also Read: The Most Common Recruitment Process Challenges Hindering Business Growth

  • Total Rewards

  • In the last few years, it has become clear that employees want choice and flexibility in the workplace. When it comes to benefits and compensation, more than a single benefit stack is needed. Reward programs must consider employees' choices and preferences. Here are a few benefits that are likely to trend in 2023:

    • Employees with low earnings and unpredictable expenses are the most financially vulnerable group. Augmenting their longevity and productivity within the system can directly impact the organization's financial health. Providing this class with benefits such as insurance, performance bonuses, and retirement plans can help. In addition, making your employees financially resilient can help open up untapped pools of talent for the organization.

    • With remote and hybrid work cultures becoming the norm, HR professionals must also consider revitalizing HR policies and processes to support remote work. This can be done by simple initiatives like planning virtual get-togethers and events for employees, giving them the freedom and flexibility to manage their work, and making remote work convenient and comfortable.

    • Employees' mental health and wellness is a significant factor that boosts employee morale. Arranging virtual sessions to educate them about anxiety, stress, work-life balance, and burnout can increase employee productivity and loyalty.

  • Organizational design and change management

  • 53% of HR leaders say change management is their top priority.

  • While 45% say, their employees are exhausted from the change.

  • Economic uncertainty, digital transformations, and political tensions have led to significant change and disruptions. As a result, organizational design and change management will likely remain a top priority for human resource professionals, especially with organizations witnessing so much uncertainty and change. Consequently, employees are also growing more immune to change.

  • 74% of employees are willing to change work behaviors to support organizational changes.

  • However, the percentage dropped by 38% in 2022.

  • Change exhaustion has clear ramifications. Human resource leaders must help employees navigate this change and mitigate the impact it has driven on their work and well-being.


2023 as a year has an immense scope of opportunities for human resources - with its own share of challenges, though! HR must acknowledge and strategically address challenges to enhance organizational growth and the employee journey. The future of work, employee experience, rewards, organizational design, and change management are a few trends that will likely transform the HR industry in 2023.

Exela HR Solutions is the market leader in outsourcing HR services that streamline your HR processes and provide employees with a smooth, hassle-free experience. Diving through workforce challenges and prioritizing actual business functions at the same time can be exhausting for the business and HR leaders. Exela HR Solutions helps eliminate this hassle from your processes and enables you to dedicate your time to revenue-generating goals and strategies.

DISCLAIMER: The information on this site is for general information purposes only and is not intended to serve as legal advice. Laws governing the subject matter may change quickly, and Exela cannot guarantee that all the information on this site is current or correct. Should you have specific legal questions about any of the information on this site, you should consult with a licensed attorney in your area.

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