2022 proved to be a turbulent year for many organizations on a global scale. Inflation hit double digits in many countries around the world. Skyrocketing energy costs in Europe made it challenging for many businesses to stay afloat. Beijing’s strict COVID prevention tactics stalled economic trade and added to supply chain distribution challenges across several regions. All the while, climate-related events have affected more than one in four organizations worldwide. What can we conclude from all of this? The big “R” being debated in human resources (HR) departments is no longer the Great Resignation, it’s “Recession.”
Are we currently in a recession or will we soon be facing one? In any case, it’s important to know how to help your organization brace for impact against HR megatrends in 2023.
Megatrends are those that take place on a global scale and considering the challenges faced by many businesses in 2022, HR departments are scrambling to predict how leaders can best serve their people and their businesses in 2023. Having to navigate an organization through turbulent times while maintaining a people-oriented culture is no easy task. From dealing with lowered levels of energy in the workplace, to experiencing a changing of the guard as Gen Xers overtake baby boomers in positions of executive leadership, many organizations are flying by the seat of their trousers.
Luckily, these three HR megatrend predictions can help you keep your head (and your business) high above the ground.
3 HR Megatrends and Ways to Help Your Business Soar in 2023
1. Boosting Low Fuel Levels (Human Energy)
According to an HR Megatrends 2023 study conducted by UKG on focus and willpower, employees exhibit a limited resource of what could be called “human energy” in the workplace. This is known as the amount of headspace dedicated to focusing on tasks creatively or innovatively. This study indicates that most people are experiencing an undercurrent of chronic anxiety that is significantly impacting their lives.
Biologically, the human brain is designed to prioritize stimuli perceived as dangerous. While this enables humans to outrun predators and survive as a species, this doesn’t serve us as well when constantly being bombarded with fear-provoking headlines and media coverage. For example, the World Health Organization (WHO) found that COVID-19 increased the presence of global anxiety and depression by 25 percent in its first year alone. So how can HR leadership give their organizations a boost in 2023?
- Employee wellness programs: Mental health checks, financial education courses, hybrid workspaces, community involvement, etc.
- Base packages: Livable wages, affordable healthcare, retirement plan
- Burnout prevention: Reasonable project demands and deadlines, team-building exercises, work/life balance
- Career growth support: Reskilling/upskilling, enrichment support, mentoring, etc.
2. Weathering the Storm (Adapting to Change)
The most successful organizations are those that not only survive during unexpected challenges, but thrive and weather the tumultuous chaos to become stronger. Challenging times can be incredible opportunities for both people and organizations to adapt and take risks in 2023. Organizations must learn to adopt a growth mindset and continue to move forward rather than reflexively fall back into pre-pandemic patterns and behaviors.
COVID-19 was a big wake-up call for organizations: We discovered more adaptable business structures are necessary to withstand the enormous amount of turbulence we face today. From economic disruption or changing employee expectations, to unprecedented global events like pandemics, war and climate change, employees need to know that you not only understand why they may be suffering, but that you also have procedures in place to help them adapt and overcome. What to do? Try to:
- Create a people-focused culture.
- Seek employee feedback.
- Actively engage with employees.
- Acknowledge external influences relative to the workplace. (Don’t hide from the world around you.)
- Have an open-door policy.
3. Handing Over the Controls (Gen X Leadership)
It is predicted that Gen Xers will dominate the corporate boardroom in the next five to 10 years. Just before the pandemic, the world was experiencing a changing of the guard as Gen Xers overtook baby boomers in the C-suite, accounting for 51 percent of leadership roles globally. There is significant research proving the impact an individual director’s characteristics (gender, ethnicity, educational and professional background) can have on the boardroom. Research conducted in 2020 by the University of New Hampshire uncovered the positive effect of “generational identity” on company performance. The research found there was a positive, statistically significant association between the percentage of Gen X directors and organizational value.
So how can business and HR executives not be so quick to dismiss a younger, future generation of leaders in 2023?
- Establish new structural practices. Seek out best practice considerations, address environmental responsibility, social issues and governance (ESG), utilize human capital management (HCM) technology tools and more.
- Assess and measure. Determine where your organization wants to go, assess the corporate landscape, risks and operations goals, measure your impact of initiatives.
- Openly and effectively communicate. Connect, inspire, inform and create long-term value through communications
Where Will Your Business Land in 2023?
Organizations and their employees are under pressure and faced with enormous challenges when it comes to staying on top. At Quanta, we know it’s hard enough to hire, retain and engage good people, let alone combat the daily challenges of the world around you.
If you find yourself researching topics like “HR Megatrends 2023” then look no further than Quanta. We’ve got the latest in HR trends and up-to-date HCM technology to help your business soar to higher heights. Contact us today and let the HR experts in HCM technology guide you toward a more productive path for your business.