Top 5 People-Centric Trends for 2023

By Roy Salapa
December 12, 2022

The rapid changes in economic conditions, technological advancements, and workforce demographics in the past years have dramatically reshaped employer practices in many ways. For instance, from the traditional work environment to the emergence of flexible work models that provide options for employers to enable a better overall work experience for employees while fulfilling business needs. Thus, observing and keeping up with trends help organizations adapt and determine optimal solutions to several challenges and integrate them to enhance current people practices that add value to the organization. 

Here are our thoughts on the people-first trends to prioritize in 2023 and how your organization can benefit from them:

Building a more genuine, diverse, and inclusive work environment

In a survey conducted by JobStreet in June 2022, more than 50% of Filipino job seekers have put company culture and environment first on top of salary offers. However, Gartner reveals that only 40% of employees feel a sense of belonging and acceptance employed in their workplace’s culture and strategy, contrary to the assumption of the companies that they foster a diverse and inclusive work environment. Therefore, there is a need to develop tools that monitor progress, measure current initiatives, and gather feedback on areas to improve. This tool may result in up-to-date, more sincere Diversity and Inclusion interventions that aid HR in properly conducting sensitivity training and creating action-oriented programs toward achieving diversity and inclusion goals. After all, effective implementation of D&I leads to improved employee productivity, satisfaction, and retention.

Upskilling and reskilling for a future-ready workforce

Technology adoption, such as automation and artificial intelligence, increases among organizations. But, according to a McKinsey Global Survey, companies will face skills gaps within the next five years. The World Economic Forum’s Future of Jobs Report states that about 50% of all employees will need reskilling (and upskilling) by 2025 to ensure they are proficient in using advanced technologies to stay competitive. Implementing a tracking system that assesses and identifies skill gaps, and oversees progress will strengthen future-ready workforce re/training programs, courses, and coaching opportunities. In addition, upskilling and reskilling efforts boost employee morale, and increase engagement and retention rates. LinkedIn 2022 Workplace Learning Report shows 94% of employees are likely to remain with a company that invests in their career development.

Mental Health Support: Putting People First

Conducting mental health webinars has been the go-to quick fix for employers in addressing mental health issues. While necessary, it does not seem to address the root problem, as Milieu Insight and Intellect cited that 52% of Filipino workers continue to experience burnout, stress, anxiety, depression, and several other mental health conditions.

An integrated intervention approach, conceptualized by Anthony LaMontagne et. al., aims to:

  • Reduce work-related risk factors for mental health problems.
  • Develop positive aspects of work.
  • Address MHP, regardless of the cause, may be used to formulate well-being programs.

Eliminating stigma through normalizing MH conversations and encouraging employees to seek professional help and treatment are crucial for a healthy, safe, and productive workforce.

Human Resource Analytics to Data Literacy

People analytics is a top priority among 70% of company executives in 2023, cited by Mckinsey Global Survey, as they perceive the value of insights from in-depth data analysis in understanding the workforce and employees’ data through data literacy framework to update HR methods. As a result, there is a demand for data-literate HR professionals that can comprehend, interpret, communicate patterns, and utilize analysis framework that translates insights helpful in making data-driven strategic management decisions and potential mitigating risks. In addition, findings from data analysis present HR opportunities to set targets and measure the effectiveness of methods and programs that will elevate innovation and productivity.

Increased focus on retention by fighting off “quiet quitting”

Quiet quitting, another term for presenteeism and high level of disengagement among employees, had been the talk of the town during the third quarter and was attributed by most employees and employers as a “moderate problem” this year, reported by UpCity Research. About 39% of respondents agreed that all generations are susceptible to quitting. Therefore, it is crucial for HR to have a strong understanding of employee motivators and explore sources of motivation to improve the employee experience. Several HR experts suggest that reassessing and developing wellness programs and policies, rewards and recognition schemes, and career progression opportunities may relieve the declining productivity to address the phenomenon.

More organizations are shifting to a people-centric approach in business processes as it attracts and retains the best talents, drives innovation, and increases profitability. As a result, HROD professionals must remain proactive with the latest trends in ensuring that they employ optimal data-driven strategies and gain a competitive advantage in the industry by cultivating a work environment where employees can thrive. 

 

Additional Readings:
Gartner (2022). The Top HR Trends and Priorities for 2023. Retrieved from https://www.gartner.com/en/human-resources/trends/top-priorities-for-hr-leaders
LaMontagne, A. D., Martin, A., Page, K. M., Reavley, N. J., Noblet, A. J., Milner, A. J., Keegel, T., & Smith, P. M. (2014). Workplace mental health: Developing an integrated intervention approach. BMC Psychiatry, 14, Article 131.
LinkedIn, 2022 Workplace Learning Report. (2022). Retrieved from 2022-LinkedIn-Learning-Workplace-Learning-Report-UK-Edition.pdf
McKinsey & Company (2021). Mind the [skills] gap. Retrieved from https://www.mckinsey.com/featured-insights/coronavirus-leading-through-the-crisis/charting-the-path-to-the-next-normal/mind-the-skills-gap
McKinsey & Company (2020). How to be great at people analytics. Retrieved from https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/how-to-be-great-at-people-analytics
Milieu (2022). Finding the balance: Understanding hustle culture and its impact on mental health and well-being. Retrieved from https://www.mili.eu/milieu-conversations/finding-the-balance-understanding-hustle-culture-and-its-impact-on-mental-health-and-well-being
UpCity (2022). 70% Of SMBs Note That Quiet Quitting Spiked Since COVID-19: 2022 Study. Retrieved from https://www.hcamag.com/asia/specialisation/employee-engagement/quiet-quitting-has-increased-since-covid-19-say-hr-leaders/427132
World Economic Forum, The Future of Jobs Report 2020. (2020). Retrieved from https://www3.weforum.org/docs/WEF_Future_of_Jobs_2020.pdf