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HR Trends of 2023 - top 5

HR Trends of 2023 - top 5

A lot of changes that had already begun before the epidemic occurred quickly and are now a permanent part of our working life. We have once again compiled a list of HR trends for 2023 based on professional reports and surveys.

An overview of top 5 HR Trends of 2023, as done in 2022 and 2021. Including skills-based hiring, AI, hybrid working, quick quitting, quiet hiring…

1. A boom in skills-based hiring

Companies recruit for potential rather than degrees. As more businesses prioritize experience over academic credentials, according to recent data by Remote, skills-based hiring has increased by 63% in the past year.
 
As the new currency in the labor market, skills based hiring is increasing rapidly. For the over two-thirds of American citizens without a bachelor's degree, skills-based hiring helps to reduce salary and career restrictions in addition to expanding the talent pool for companies. Employers benefit from skills-based hiring because it boosts hiring efficiency, diversifies the workforce's perspectives, and widens the talent pool.
 
This transition is speeding up as more and more occupations, like those in computer support and software engineering, don't require a degree to be employed. According to the Burning Glass Institute's analysis of millions of internet job postings, 44% of positions in 2021 will require a college degree, down from 51% in 2017.
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Organizations who base their hiring decisions on skills, are 98% more likely to retain high performers according to a study carried out by Deloitte.
 

2. AI is changing HR operations

The way businesses handle their human resources could be completely changed by the use of AI. HR leaders must adopt a strategic approach to this shift that focus on assessing AI's applicability, building support for their teams, avoiding hazards, and assuring compliance with legal and regulatory obligations.
 
Organizations can use the power of AI to speed up processes, improve decision-making, and improve the overall employee experience by encouraging collaboration with IT executives, employing the best individuals to oversee AI efforts, and investing in staff training. In the end, embracing the AI revolution necessitates striking a delicate balance between technology advancement and human understanding, paving the way for a more productive, data-driven, and people-centric future.
 
Some AI applications found in HR are in generative AI for job descriptions, job offers, messages, translations, hard skills evaluations, AI machine learning for assessments and behavioral analyses, data organization, trainings and many more.
 
 
 

3. An hybrid workplace for the long haul 

The norm now is hybrid working. Nine out of ten businesses will combine remote and on-site working, according to a McKinsey prediction. According to a ZipRecruiter survey, job seekers would accept a 14% wage loss to work remotely.
 
In order to succeed as hybrid working becomes the norm, company and HR leaders must establish clear principles rather than impose rules.
 
First, start with defining what hybrid means in the organization. It’s a lot more complicated than the number of days one works remote or in the office. Start by defining hybrid working in the context of the organization and what it means for your processes. It's much more involved than how many days a person works in the office or remotely. Before an employee begins working in a hybrid model, they and the team leader must come to an agreement on rules to promote inclusion. These rules should include the workspaces where work will take place, the technology tools required, the team norms, core collaboration hours, and rituals for success.
 
Start by kicking off a conversation about hybrid working with your employees, then define the specifics.
 
 

4. Prepare for the quick quitting

 
Multiple sectors continue to worry about losing an important number of their workforce. Hospitality, healthcare, transportation, and retail are the sectors most at risk.
 
"Quick quitting" refers to the phenomena of deskless employees departing a company shortly after being employed. Although losing pay would seem like a no-brainer cause for employees to leave a job, it doesn't seem to be the primary driver of abrupt resignation. Employment decisions will always be influenced by pay; a Boston Consulting Group (BCG) study reveals a number of other factors that influence quick quitting.
 
The study indicated that the primary drivers of quick quitting were emotional rather than financial. The research highlighted many factors of critical importance to deskless workers. Key factors include fair treatment, respect, meaningful work, enjoying work, being valued, employer reputation, and a good relationship with management. Employers should concentrate on the following areas, according to the BCG, to prevent quick quitting: Determine what employees desire by talking to them about what they want from their jobs.
 
Employers should also invest in the employee experience by using technology to optimize workflows and hiring and onboarding procedures.
 
According to the BCG study, 63% of Gen Z employees reported feeling burned out at work, and 55% were either actively or passively seeking for new options.
 
 

5. Quiet hiring

 
Quiet quitting came to the attention of the HR community in 2022 (read top 5 HR Trends of 2022). A new "quiet" practice has emerged in 2023. In many ways, quiet hiring is the exact opposite of quiet quitting. Employees who quietly left their jobs did the absolute minimum to finish their assignments. Employers identify those workers who go above and beyond through quiet hiring.
 
Quiet hiring is the top HR trend for 2023, according to a study by Gartner. Quiet recruiting is fundamentally a strategy an organization can use to address skill shortages without changing headcount. Employers can fill their staffing gaps without adding new permanent employees by concentrating on internal recruiting and internal talent mobility.
 
While the practice of "quiet hiring" may involve filling gaps with temporary contractors, the trend generally involves finding workers who could move into an available job within the organization. Changing an employee's role temporarily or giving them more responsibility in order to meet an urgent demand are also examples of quiet hiring.
 
Simple actions like temporarily reassigning administrative personnel to a customer-facing position might serve as an example of quiet hiring. Companies might use this action to handle an unexpected spike in inquiries or resolve a technical issue.
 
Quiet hiring could lead to a few issues. If another employee doesn't take over those responsibilities, employees who have been temporarily reassigned to another role can believe that their current position isn't very important. If additional responsibilities aren't sufficiently rewarded, employees may feel exploited or overworked.
 
 

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