The continuously changing and increasingly important human element in the modern workplace illustrates the tremendous importance of the HR function, as well as the challenges and opportunities that function faces.
HR Front and Center in Today’s Workforce
As recent shake-ups to the HR function (like the COVID-19 pandemic) have demonstrated all too well, it’s impossible to predict the nature of the American workplace even a couple of years into the future. However, that doesn’t mean we shouldn’t at least try to make a best guess. Having an ear to the ground to stay abreast of emerging trends and worker sentiments is crucial for any HR professional.
Let’s consider some predictions for the HR function in 2023 from Megan Smith, Head of HR at SAP North America.
- Organizations will prioritize community over offices. “Organizations are realizing we have too quickly traded away connection and community for the convenience of remote work,” Smith says. The result is the need for a shift in business strategy for both financial and cultural purposes. That shift, she says, will require a focus on “investments on regular travel for remote workers to promote purpose-driven connectivity and community, instead of maintaining disparate offices.”
- Gig work structures will redefine traditional retirement. An aging workforce will require a shift in how we define “retirement,” Smith adds. These older workers increasingly want to stay engaged to some degree in the work world, if only on a part-time basis. In turn, Smith says, “HR leaders will work to embrace and define gig and flexible structures that work for their organization, while also supporting the large demographic who isn’t prepared for full or traditional retirements.”
- The HR onus will be on transferable skills. Talent moves around more often these days, and rather than fighting that trend, Smith notes that HR leaders can leverage it by prioritizing “workforce planning that focuses on building talent pools with transferable skills, so they can quickly flex and fill talent gaps as business strategies shift.”
- People-first culture will become table stakes. “With constant message overload about an economic recession and news of layoffs, investing in a people-focused culture—a robust benefits portfolio, talent retention, strong leadership—will be a business imperative,” Smith continues. “In the end, the foundational message must be about people, and HR leaders will home in on what employees want, making sure to consider the key factors that can lead to burnout and workplace dissatisfaction.”
Smith’s predictions are several among many, many others from HR leaders across the country and around the world. While different experts may differ in their specific predictions, it’s easy to see commonalities in the broader trends these experts see as drivers of future changes: an aging workforce, a tight labor market, the continued embrace of remote work, and growing awareness of work-related mental health issues.
Lin Grensing-Pophal is a Contributing Editor at HR Daily Advisor.