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(9) 12 HR Trends for 2023: Humanising (the Future of) Work | LinkedIn

10 HR Trends for 2023 (hrexchangenetwork.com)

The new possible: How HR can help build the organization of the future | McKinsey

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This is the moment for HR and People Analytics.

This generation of HR leaders has been appointed by history to define the workplace of the post-industrial era

Those were the words of Diane Gherson, formerly chief human resources officer at IBM and now a senior lecturer at Harvard Business School, when she addressed people analytics leaders at the Insight222 Global Executive Retreat in Boston in October. Diane's inspirational clarion call is the perfect preface to my annual ritual of gazing into the crystal ball to ponder what's in store for HR in the next calendar year.

I've worked in the HR industry now for a quarter of a century (yes, I really am that old), and by my estimation this is the most exciting - and the most challenging - time to be in the field. Since the turn of the decade, we've had a global pandemic, war and now a likely global recession. During this time, the chief human resources officer (CHRO) and the HR function have become as important to the organisation as the chief financial officer and the finance function were during the Global Financial Crisis.

When you add in other macro factors such as the fourth industrial revolution, the changing nature of jobs, the rise of hybrid work, the skills shortage, raised employee expectations, and the diversity agenda - all topics with people at the core - it's easy to see why expectation levels on CHROs and the functions they lead are at an all-time high.

I've been compiling this annual set of predictions and trends since 2014, and it's ostensibly been a solo effort, which may account for the questionable track record of the accuracy of the predictions. So, I thought it was time to change direction and in the immortal words of The Beatles, ' get by with a little help from my friends' by forming a 'band' to help compile the track listing for 2023. Fortunately, thanks to a terrific reaction, this band is definitely more Spiders from Mars than Tin Machine, and has enabled an eclectic compilation to be assembled. So, thank you to (in no particular order): Diane Gherson, Dave Ulrich, Katarina Berg, John Boudreau, Anna A. Tavis, Ph.D, Dr Tomas Chamorro-Premuzic, Dawn Klinghoffer, Ravin Jesuthasan, CFA, FRSA, Jacqui Brassey, PhD, MAfN, Andrew Marritt, Kathleen Hogan, Tanuj Kapilashrami and Ian Bailie (please see full list of contributors later).

As such I have higher than usual levels of confidence that the 2023 trends are more salient than prior editions. They are also informed by data, research, the experience of working with over 100 global organisations as part of the work we do at Insight222, and conversations with colleagues, peers and guests on the Digital HR Leaders Podcast. Whether any of this helps, we'll have to wait 12 months to find out!

Studious readers will note that the title and accompanying image indicate 12 trends, whereas only ten are outlined. That is because - as was the case in the previous two years - I'm keen to crowdsource the final two trends from readers of this article. What other trends should be included? Please let me know in the comments section below, and I'll add my favourite two to an updated version in the New Year.

LISTEN TO THE 2023 HR TRENDS PODCAST (AVAILABLE FROM JANUARY 10, 2023)

We're recording a special episode of the Digital HR Leaders Podcast where I'll be joined by Diane Gherson, Dave Ulrich and Ian Bailie to discuss the year ahead and what HR leaders and professionals should do to prepare for the future. You can listen by clicking here from January 10, 2023, by subscribing here, or by following the Digital HR Leaders podcast on Apple, Spotify, Google or Amazon.

Now let's get to the trends...

THE 2023 HR TRENDS

1. TACKLING RECESSION VIA A PEOPLE FIRST APPROACH

The only certainty in the 2020s it seems is uncertainty - and huge doses of it. The most consistent theme in the suggestions provided by contributors to the 2023 trends is the potential impact of the economic downturn and forecasted recession on the work of HR. As a number of contributors highlighted, this will be the first experience of a recession for many leaders, workers and HR professionals. Will organisations and leaders revert to pre-Covid mindsets on the balance of power between employers and employees (e.g. where, when and how work gets done), and take the traditional approach of using layoffs to manage costs? With this downturn likely to paradoxically coincide with heightened talent scarcity and competition, a different and braver approach will be required. Emboldened with data, driven by a purpose to put employees at the centre, and with their influence on the c-suite higher than ever, HR has the opportunity to take leaders on a different path to (in the words of John Boudreau): " better understand the nuances of the work relationship and business cycles that include downturns."

FIG 1: HR tackling recession

2. SOLVING THE 'PRODUCTIVITY PARADOX' OF HYBRID

Other than a few outliers (most notoriously Elon Musk), most companies have now adopted some form of hybrid working. However, the disconnect between employers and employees on whether hybrid enhances or impacts productivity continues to widen. Microsoft's Work Trends Index categorised the debate as 'Productivity Paranoia' (see ). If anything, the increasing likelihood of a combination of a global recession coupled with a continuing skills shortage is likely to pour further fuel on what is already a contentious tinder box topic. This is where we need less dogma, and more data. Now that most companies have begun to engage in true hybrid work, data is imperative to help companies understand key questions such as: What's working? What isn't? Why are we more, or less productive/agile/innovative either working remotely or working from the office? When does in person matter? How should we redesign work, workforces, and workplaces for the hybrid era? These are big questions - ones that require data, collaboration, and experimentation. The answers are likely to evolve over time and will shape the agenda for years to come. Solving the 'Productivity Paradox' is an enormous opportunity for HR and people analytics professionals to lead the design of the organisation of the future, one that is fully adaptive to hybrid work, workplace and workforce, and also has purpose, value and culture at its heart.

FIG 2: Productivity Paranoia (Source: Microsoft Work Trends Index)

3. BUILDING THE SKILLS-BASED ORGANISATION

Three-quarters of CEOs are concerned about the availability of key skills and how this could constrain them from acquiring, developing, and retaining the talent they need to drive growth. This is prompting an increasing number of companies to transition towards a 'skills-based organisation'. The effort to do so should not be underestimated especially as the consequence of this shift is that the dominant structure of work for the past century - the job - is increasingly being disrupted: " We have 140 years of learned behaviour on the part of leaders and managers that we are attempting to change" as Ravin Jesuthasan, CFA, FRSA astutely observes. We are still in the early stages of the transition with research by Deloitte finding that fewer than one in five organisations are currently adopting skills-based approaches to a significant extent. However, the same study found that 90% are moving towards a skills-based approach. This tallies with our research at Insight222, which found that nearly all companies (90%) expressed a desire to build a skills-based approach to workforce planning but that only a quarter are currently doing so. Trends to look out for in this area include, first: expect to see HR lead the way as companies develop new operating models (see example in ) and revamp work design (see ) as part of the transition to a skills-based organisation. Second, greater emphasis on hiring for skills ( McKinsey reports that hiring for skills is five times more predictive of job performance than hiring for education) enabling, as contributor Anna A. Tavis, Ph.D envisions, HR to ramp up efforts to hire 'hidden workers' and embrace non-traditional talent. Third, more investment in internal talent marketplaces leading to more gigs, increased focus on internal mobility, greater agility and productivity (e.g. Standard Chartered unlocked productivity of $2.1m from a talent marketplace pilot in India) and the rise of innovative new practices such as sharing talent between organisations. And finally, growing recognition that skills are not only a key component of corporate social responsibility, but also in harnessing skills data to personalise the employee experience. Companies leading the way in this shift include: Unilever ( 1, 2), Spotify, Novartis and IBM - where " skills is a silver thread across the employee journey. "

FIG 3: The skills-based organization (Source: Deloitte)

FIG 4: Work Design to deconstruct, redeploy and reconstruct work at scale and pace (Source: Ravin Jesuthasan and John Boudreau)

4. GENERATING VALUE WITH PEOPLE ANALYTICS

The People analytics market was buoyant in 2022, and despite the macroeconomic context is set to continue to soar in 2023, especially in functions that are delivering demonstrable value to their companies. Insight222's third annual People Analytics Trends study highlighted the continued growth in the importance and influence of people analytics in global organisations. People analytics leaders are gaining more influence across the top of organisations, with 21% of leaders reporting directly to the CHRO, compared to 13% in 2021. Moreover, of the 184 companies that participated in the research, 88% had worked on topics requested by the board of directors in the prior 12 months. Leading Companies invest, measure and scale people analytics more than other companies and display seven characteristics (see ) that enables them to deliver value on a consistent basis. At its most impactful, people analytics is contributing millions of dollars of value to the top and bottom lines as well as helping to solve a multitude of talent challenges and creating a positive impact on workforce experience, culture and even society. Investment in the field is set to continue with 68% of the 184 companies surveyed by Insight222 predicting that their team size will grow in the next 18-24 months. In 2023, I expect to see the work of people analytics teams focusing on solving the biggest questions CEOs are asking, understanding when in-person matters (see Trend #2), progressing the DEI agenda, improving wellbeing, productising and personalising the employee experience, and (as suggested by contributor Andrew Marritt) increasingly using mixed methods approaches in their analyses. If HR is going to fulfil the lofty expectations placed on its shoulders and successfully grasp the golden opportunity in front of it, then people analytics has a pivotal role to play.

FIG 5: The seven characteristics of Leading Companies in People Analytics. The percentage indicates the number of positive responses from companies that answered questions related to the seven characteristics. Base: Leading Companies: n=8; non-Leading Companies: n=176. (Source: Insight222 People Analytics Trends 2022)

At its most impactful, people analytics is contributing millions of dollars of value to the top and bottom lines

Excellence in People Analytics by Jonathan Ferrar and David Green (Kogan Page, 2021)

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5. AMPLIFYING THE EMPLOYEE VOICE

In research conducted with member organisations of the Insight222 People Analytics Program, we discovered that companies that 'do employee listening well' focus on business outcomes and key c-suite topics. They scale employee listening across the enterprise. And they take the insights they gather to enable decisions that benefit both the company and the employees - the very people that are being 'listened to.' As employee listening can deliver substantial returns to the organisation, it is perhaps not surprising that the frequency and sophistication of, and investment in, employee listening programs are all rising. Employee listening is also increasingly being coupled with people analytics. A recent Insight222 study found that people analytics teams are responsible for employee listening in 61% of companies. Perhaps more tellingly, the same study found that in the 69% of these organisations where people analytics is responsible for employee listening, the company has a clearly defined employee listening strategy. In comparison, only 43% of companies have a clearly defined strategy where people analytics is not responsible for employee listening. Examples of companies who combine people analytics with employee listening and are delivering value include Microsoft (see 1, 2 and 3), ABN Amro and Uber. Trends to look out for in the future of employee listening include more: i) active listening channels (e.g. video, voice, text, chat) for employees to actively provide feedback, ii) collection of passive listening meta data (e.g. calendar, email, collaboration tools etc), and iii) text analytics to get deeper insights from employee comments, which as Andrew Marritt comments will help highlight: " work intensity and job quality as key issues in employee feedback."

People analytics teams are responsible for employee listening in 61% of companies

6. HUMANISING THE WORK EXPERIENCE

It's difficult to disagree with Josh Bersin's assertion that the post-pandemic era is quickly becoming defined by employee experience: " How your organization shapes the way people work and live-from productivity to flexibility, wellbeing, health, and everything in between." Coupled with the fact that we are living in the age of AI and automation, Dr Tomas Chamorro-Premuzic argues that this puts pressure on leaders to: " Provide not just a human, but also humane experience of work to employees." There is an incontrovertible link between EX and people analytics. Both need the other to thrive. According to The State of EX 2022 report, the quality of data is a major barrier to achieving EX goals. The study also highlights that measuring the business/financial impact of EX improvements is the number one challenge, being a struggle for 85% of organisations. While for people analytics, our research at Insight222 has found that where the right data is being collected (see also #5) EX is consistently one of the top areas where people analytics is adding the most value. One company that is combining EX with analytics to personalise the employee experience is ABN Amro, but critically as Patrick Coolen explains: "We only apply personalized analytics if it benefits the employee." This is an approach that makes it more likely that you'll get the support of chief privacy officers, works councils and employees themselves. EX provides the catalyst for HR to become "the motor of a continuously changing organization that serves employees." As HR professionals we have, in Diane Gherson's words, the opportunity " to define the workplace of the post-industrial era" and craft cultures that are inclusive, healthier, psychologically safe, fairer, agile, humane, and ultimately more successful.

EX provides the catalyst for HR to become "the motor of a continuously changing organization that serves employees"

7. ADVANCING DIVERSITY, EQUITY, AND INCLUSION

FIG 6: A snapshot of companies' DEI progress (Source: Ella F. Washington, The Necessary Journey: Making Real Progress on Equity and Inclusion)

For the second consecutive year, research by Insight222 found that diversity and inclusion is the top area where people analytics is adding the most business value. In many companies we've studied, the partnership between people analytics and diversity, equity, inclusion and belonging (DEIB) specialists is enabling organisations to move the dial and drive action on DEIB topics including pay equity, bias, inclusivity, intersectionality and homophily. While this progress is to be welcomed, there is still a long way to go as research on the DEI maturity of organisations by Ella F. Washington, Ph.D. (see ) finds. Nevertheless, there are many reasons to expect more progress. First, the amplification of the employee voice has made it crystal clear to leaders that action on DEIB issues is expected by the workforce, which partly explains why more companies are being increasingly transparent about DEIB - witness companies such as Microsoft, Target and PwC publishing an annual DEIB report. Second, evidence of the business value of DEI is stronger than ever - for example a RedThread Research and Degreed study found that organisations that foster DEIB are 81% more likely to have higher customer satisfaction. Third, the growth of people analytics and its strong focus on the topic is seeing measurement of DEIB getting more sophisticated, more insightful and more action oriented. One trend to look out for in the DEIB space in 2023, according to Katarina Berg, chief people officer at Spotify, in her contribution the 2023 trends, is: " we will see more and more of DEI by design " in line with the end-to-end employee experience.

8. FOSTERING MENTAL HEALTH AND WELLBEING AT WORK

Burnout is real and has serious ramifications for an increasing number of people in the workplace with regards to their physical and mental health. A 2022 study by the McKinsey Health Institute (MHI) of more than 15,000 employees and 1,000 HR decision-makers in 15 countries highlighted how the impact of the pandemic has seen burnout levels reach an all-time high with one in four employees experiencing symptoms of burnout. Microsoft's chief people officer, Kathleen Hogan, encapsulates the challenge as a Human Energy Crisis, with social unrest, geopolitical instability, economic uncertainty part of a perfect storm causing further strain and exacerbating burnout. What can be done? A clue was provided by Jacqui Brassey, PhD, MAfN, one of the authors of the MHI study, in her conversation with me on the Digital HR Leaders podcast where she called for organisations to take a systemic approach to improving employee mental health and wellbeing. In her contribution to the 2023 Trends, Jacqui paints a vision where: " The next horizon of mental health and wellbeing programs will be integrated into the core business strategy and throughout the entire employee life cycle (from attraction to onboarding, development and retention) in support of the employee value proposition." As HR professionals we have the opportunity - and responsibility - to turn the rising tide of burnout, employ effective listening (see also Trend #5) and then action, callout toxic behaviour, integrate mental health and wellbeing into employee experience programs, and so create happier and healthier workplaces. As Kathleen Hogan proclaims: " Now more than ever, positive business outcomes depend on positive people outcomes. "

FIG 7: Source: McKinsey Health Institute

Now more than ever, positive business outcomes depend on positive people outcomes

9. ENABLING PURPOSE AND ESG

FIG 8: HR Contributions to ESG Agenda (Source: Dave Ulrich)

Organisations are facing increasing scrutiny and pressure to focus on its environmental, social and governance (ESG) proposition. This pressure is coming from external bodies such as regulators and investors, but also from employees who are increasingly focused on topics like purpose, meaningful work and sustainability and the impact that their companies have on the climate and society. Research by McKinsey found that when employees find their work to be meaningful, their performance improves by 33 percent, they are 75 percent more committed to their organisation, and are 49 percent less likely to leave. In his contribution to the 2023 trends, John Boudreau comments that: " Workers will increasingly demand to see the tangible effects of their efforts on ESG outcomes, and the best workers will vote with their feet, choosing organisations that match their values." Dave Ulrich draws on the parallels between ESG and the work of HR, and how human capability is both a subset and an enabler of ESG (see ). McKinsey's Jacqui Brassey, PhD, MAfN envisions: " More transparency, measurement, analytics, and reporting by HR, particularly in the 'S' of ESG, " and that these will be woven into existing engagement, DEI and other people metrics. This is a trend that will play out over a number of years, but in 2023 expect to see HR - and people analytics teams - play an increasingly important role in their organisation's ESG proposition, and perhaps more importantly, help move purpose from rhetoric to action.

10. UPSKILLING HR

FIG 9: Example of a blended learning journey for data-driven HR (Source: Insight222)

FIG 10: How do you create a data-driven culture in HR (Source: Anshul Sheopuri, Digital HR Leaders podcast)

Upskilling in HR is important. To deliver on the raised expectations of leaders and employees, as well as chief people officers themselves, and capitalise on the opportunity in front of the function, the skills of HR professionals need to evolve. In the HR Competencies and Capabilities Study, Dave Ulrich and his team identified five key competencies and actions for HR professionals: to accelerate business results, advance human capability, mobilise information, foster collaboration, and simplify complexity. These dovetail well with the HR in the Digital Age research we undertook at Insight222, which identified nine skills for the future HR professional to be more data driven, experience led, and business focused. Together these skills will help HR professionals develop a digital mindset to solve business challenges, enhance culture, improve employee experience, and drive productivity. If we take the data driven element as an example, the gap between expectation and reality can be seen. Insight222's recent study of 184 global organisations, found while 85% of CHROs have made it clear that data and analytics are an essential part of HR strategy, only 49% of these same companies currently have a data driven culture for people data and analytics. 2023 is the year to close that gap. To provide an illustration of how, examples are provided below, i) of an immersive cohort based learning experience, coupling interactive bootcamps and digital learning () we deliver at Insight222 to companies to help HR professionals build advanced capabilities in data-driven skills that can immediately be applied on the job, and ii) highlights () from a conversation I had with Anshul Sheopuri, Chief Data and Technology Officer for HR at IBM, on the Digital HR Leaders podcast on how IBM has built a data-driven culture in HR.

THANK YOU

The 2023 edition of the HR Trends wouldn't have been possible without the contribution of the amazing group of people below, who are all playing a significant role in shaping a more humane future of work with HR to the fore. Thank you to all of you for contributing to what I hope is a helpful resource for the community:

Diane Gherson, Senior Lecturer at Harvard Business School, Former CHRO at IBM; Dave Ulrich, Rensis Likert Professor at University of Michigan Ross School of Business, Co-Founder and Principal at The RBL Group; Katarina Berg, Chief Human Resources Officer at Spotify; Kathleen Hogan, Chief People Officer at Microsoft; Tanuj Kapilashrami, Chief Human Resources Officer at Standard Chartered; Dr. John Boudreau, Senior Research Scientist and Professor Emeritus, University of Southern California; Anna Tavis, Clinical Professor, Academic Director, Human Capital Management Department, NYU, SPS; Tomas Chamorro-Premuzic, Chief Innovation Officer at ManpowerGroup and Professor of Business Psychology at Columbia and UCL; Dawn Klinghoffer, Global Head of People Analytics at Microsoft; Ravin Jesuthasan, Recognised futurist, bestselling author and global leader for Transformation Services at Mercer; Jacqui Brassey, global co-leader at the McKinsey Health Institute, an affiliated Senior Expert People and Organizational Performance at McKinsey & Company, academic researcher at VU Amsterdam and Adjunct Professor at IE University in Madrid; Andrew Marritt, CEO at Organization View, and; Ian Bailie, SVP, People Operations at Crypto.com

RESOURCES

The long list of resources below all informed the 2023 Trends and are recommended for further reading on the topics covered herein:

Introduction

This is the moment for HR and people analytics by Diane Gherson (LinkedIn, 2022), Fourth Industrial Revolution (World Economic Forum, 2022)

1 Tackling recession via a 'people first' approach

2 Solving the 'Productivity Paradox' of hybrid

3 Building the skills-based organisation

4 Generating value with people analytics

5 Amplifying the employee voice

6 Humanising the work experience

7 Advancing diversity, equity and inclusion

8 Fostering mental health and wellbeing at work

9 Enabling purpose and ESG

10 Upskilling HR

LIST OF 2023 PREDICTIONS AND TRENDS

There is also a plethora of other 2023 trends and predictions out there. Some that I recommend reading are presented below (I'll add to this list as more pieces are published, and please put any recommendations in the comments):

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ABOUT THE AUTHOR

David Green 🇺🇦 is a globally respected author, speaker, conference chair, and executive consultant on people analytics, data-driven HR and the future of work. As Managing Partner and Executive Director at Insight222, he has overall responsibility for the delivery of the Insight222 People Analytics Program, which supports the advancement of people analytics in over 90 global organisations. Prior to co-founding Insight222 and taking up a board advisor role at TrustSphere, David accumulated over 20 years experience in the human resources and people analytics fields, including as Global Director of People Analytics Solutions at IBM. As such, David has extensive experience in helping organisations increase value, impact and focus from the wise and ethical use of people analytics. David also hosts the Digital HR Leaders Podcast and is an instructor for Insight222's myHRfuture Academy. His book, co-authored with Jonathan Ferrar, Excellence in People Analytics: How to use Workforce Data to Create Business Value was published in the summer of 2021.

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12 HR Trends for 2023: Humanising (the Future of) Work

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This is the moment for HR and People Analytics.

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To remind knowledge after course, for ex: Biz School, MIS...
Format: Quiz

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ABC XYZ
. Build learning culture
. Level up communication skills (motivation, content, designs)

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Certify L&TD capabilities to be more credit in consultancy. 

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Certify L&TD capabilities to be more credit in consultancy. 

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- HR Certificate about Instructional Design, Train the Trainer, Performance Management, Competency Building

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. Utilize budget & take most advantages from each investment.
. Well plan & practice as reference

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Performance Management & People Review: Focus on development for successors (Mentor, Coaching)

360 degree feedback: for ExCo-2?

Talent Incubation:

DEI: clear roadmap

Skill for Future: Data and Tech topics?

Middle Odyssey: Differentiate Junior, Middle & Senior?
ExCo Offsite Meeting: Digital Capabilities?

Competition: Super Hero in skillset

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Strengthen collaboration across functions & internal teams

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Strengthen collaboration across functions & internal teams

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. More engaging activities
. Feedback culture

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Develop & retain talents for business needs

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Develop & retain talents for business needs

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. Provide training & solutions to retain talents, suitable ees in each role - to maximize productivity

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Engagement:
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- Interactive networking
Learning:
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E-learning:
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Culture:
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- Learning culture
Management
- Mentor/Mentee
- Reverse mentor
Coaching

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Build strong team with solid knowledge & skills

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Build strong team with solid knowledge & skills

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. Provide required knowledge as level >> To work independently, to consult customers instead of receiving request

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Enhance operation efficiency: Data Management & Automation

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Enhance operation efficiency: Data Management & Automation

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. Data record & tracking, data visualization & automation
. Fast, concise & insightful

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Build & engage team >> Less big changes during the resources change.

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- Trainers Incu: registration form => train the trainers
- Well-being series

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What?
Learning new thing everyday culture
Format: Email, 1 platform/community to share 1 piece of knowledge
Frequency: Weekly/Monthly

Why?
Lifelong learning is not just learning in L&D activities, not only in daily job, but learning is also sharing...

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Giới hạn 1 tháng tối đa bao nhiêu training, đối tượng X có tối đa bao nhiêu training tháng đó

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Tập trung vào chất lượng, với 1 số lượng nhất định. Không bị quá tập trung vào 1 đối tượng nhất định - họ sẽ bị ngợp/ mình sẽ bỏ qua các đối tượng khác & Đảm bảo workload của team