2023 HR Predictions: Tech Will be Key to Harnessing Great Talent
Check out talent trends that ought to be on every CHRO’s radar.
Human Resources executives are in planning mode for 2023. What are some top talent trends they need to be aware of? Where should they be planning their investments? Jess Elmquist, chief human resources officer and chief evangelist, Phenom, lays out some of the big-picture talent trends coming at us and provides advice on how C-suite leaders can prepare.
Whew! What a year for those of us in HR.
2022 will be remembered for some notable labor market trends: the tug of war between return to the office vs. work-from-home, ongoing employee churn, soaring payroll costs, limited hours of operations, and jobs, jobs, jobs galore – two jobs for every person who wants to work. These conditions created optionality and an empowered talent marketplace unseen in recent years.
In my frequent discussions with fellow senior talent leaders, those issues sum up what this year was about: when HR problems became business problems.
Chronic staffing shortages impacted large and small companies in ways that hadn’t before. I was talking to an organization with over 100 retail outlets across the country, and some mornings they couldn’t open stores because of insufficient staff.
This type of bottom-line business stress turned the spotlight onto CHROs, giving them time to shine and solve complex business problems. I encourage those leaders not to let the light dim!
The national staffing crisis has affected everyone. Yet several industries, including education, healthcare, hospitality, retail, and travel, need to see a clear way forward. They’re unable to staff properly, and that downgrades the customer experience. Unfortunately, I don’t see the labor shortage ending anytime soon, so focusing on attracting new employees and keeping the ones companies already have is important. And will remain so.
A Light Bulb Moment for CEOs
Insufficient staffing rippled up to the C-suite, grabbing the attention of CEOs. They understood that the connection between talent and profit was more closely connected than once thought and required a new way of thinking.
“The most talented people aren’t in San Francisco anymore, and they’re not here in New York,” tweeted Brian Chesky, CEO of Airbnb. “The most talented people are everywhere now.”
And he’s right. The more skills and expertise a person holds, the more freedom they have to choose lifestyle and work. Companies are dropping fictitious borders from their recruiting scope and combing through every market for the talent they seek. Some industries are even considering opening schools to meet tomorrow’s hiring needs.
This new pressure has caused every company to be on a talent transformation journey.
Recruiting and retaining amazing talent assures shareholders that management is capable of big things. But truth be told, there’s an air of uncertainty in corporate boardrooms heading into next year. Leaders wonder if technology can solve the staffing quandary. And what does talent want in a job?
All good questions. So let’s talk answers.
Today’s talent wants the kind of personalized experience they get from Netflix. They want efficiency and speed. That’s why personalization and automation were such hot topics this year. Next year’s big focus? Employee skills. Expect to hear about career pathing, development, and how to build an intelligent talent experience.
Key HR Trends to Prepare for
To help CHROs and other decision-makers get further answers to their HR strategies, here are some other big-picture trends I expect we’ll be hearing more of in the months ahead.
1. More CHROs will see artificial intelligence as the way forward
Data can sometimes feel cold inside our HR world. But what I found in my lived experience as a leader in talent is that data unlocks great experiences for candidates, employees, recruiters, managers, HR leaders, and HRIS teams – pretty much everyone involved in the process. And believe me, it is a process that requires – no, make that demands – something more experience-centric and authentic.
One of my favorite Einstein quotes gets to the heart of the matter – “we can’t solve our problems with the same thinking we used when we created them.”
And that’s why I feel that more organizations will see the benefits of AI, but frankly, some obstacles remain. In conversations with dozens of CHROs in the last few months, I learned that their largest challenge is changing the mindset of their business leaders who have not yet fully gotten on board.
I would suggest to these reluctant CEOs to get up on the balcony, look down on their business, and ask themselves: “Are we thinking differently? Are we investing time, talent, and treasure on the things that matter most? How far behind will we fall if we don’t invest in AI when our competitors are already in the game?”
Accenture found that companies with advanced AI maturity – AI Achievers — attribute nearly 30% of their total revenue to AI. Nearly 75% of the world’s largest organizations have already integrated AI into their business strategies, many reporting an ROI that exceeded expectations. AI is a defining technology for hiring and retaining people. The proof is there.
See More: Artificial Intelligence and the Future of Work
2. See your people as more than just workers
This may seem obvious at first glance, but there are still too many organizations that view their people through the prism of only work. Banish that thinking and see them as individuals with a deep sense of identity, passion for life, families, and interests and hobbies outside of the 9-to-5. Get to know their personal side.
Create options for them to care for their families. I’m not talking about ping-pong tables or free laundry. Those things are fine. What I’m talking about goes much deeper. Define a new lifestyle contract to create work environments that allow people to do their best work while building sustainable lifestyles that will scale and strengthen as work pressure mounts.
Start by focusing on their professional development. Think gigs, career paths, learning and development, mentorships, stretch assignments, and performance coaching.
One way to do that: plan with your head, but think with your heart.
Gen Zers are pursuing careers not just around joining a stable company that pays well. They are also evaluating that company’s footprint around sustainability, DE&I, charitable endeavors and other measures beyond profit. Organizations should communicate these values early and often, and give employees time off from work to fuel their passion for doing good.
See More: Look at Talent Development as a Continuous Development Approach
3. “Someone Saved My Life Tonight”
Elton John’s hit about depression and suicide is an appropriate segueway to my next trend. Employee mental health and well-being will take on even greater importance. I recently went to see Elton John play at a big outdoor stadium. There must have been about 40,000 fans in the audience singing along to his big hits. Rocket Man even did a longer rendition of “Someone Saved My Life Tonight” in a jazzy, super cool way.
You could feel how electric the emotion was in the stadium. It got me thinking: who are those people in our lives who saved us? Who are those people in our lives we’ve reached out to and helped? That’s the real work as we think about performance and profit. Focusing here will help organizations win, and it’s a pretty phenomenal thing.
I think about how that applies in the talent world. HR leaders yearn to make a difference in someone’s life. And, there are times we’re going to need some help too. Employees should feel free to ask for it and know that management will step up.
When employees feel valued, the more likely they’ll stay. Performance increases when employees are mentally healthy and have mental tools to support their stability. This continuity contributes to a company’s growth mindset. Numerous studies bear this out. Showing workers you care will only grow in importance in the new talent economy.
Vision for the Future
Bringing this year to a close, I have one final thought: CHROs have weathered a lot, yes, but we’re a resilient bunch. I wish each and every one business success in the new year. Keep advocating for yourselves and your employees in the C-suite. Make the case for a sound tech investment in AI. Pledge that 2023 is the year you claim your seat in the executive conference room.
What strategies CHRO’s should implement to streamline talent management in 2023? Let us know on Facebook, Twitter, and LinkedIn.
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